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Canaan posts strong Q3 as miner demand surges
Canaan, a leading Bitcoin mining hardware manufacturer, saw its shares jump sharply after reporting third-quarter results that showed revenue more than doubled year‑on‑year. The company's Q3 revenue totaled $150.5 million, a 104% increase from the prior year, driven primarily by robust demand for mining equipment as miners expanded operations to capture rising Bitcoin (BTC) rewards.
Equipment sales and North American orders led growth
Mining hardware made up the bulk of Canaan’s sales, with mining equipment revenue amounting to $118.6 million in the quarter. The company flagged a “substantial volume of new orders,” noting that a sizable portion of these came from U.S. customers. CFO James Jin Cheng said North American buyers accounted for 31% of total Q3 revenue, reflecting renewed strength in that regional market for ASIC miners and large-scale mining deployments.
Other public miners also reported strong gains: HIVE Digital announced a 285% earnings increase, and BitFuFu doubled its Q3 revenue as demand for both cloud mining services and physical mining rigs rose amid Bitcoin’s price recovery.
Stock reaction, profit dynamics and mining results
Canaan shares (CAN) closed up nearly 21% at $1.03 on the earnings day, with after-hours trading pushing the stock to about $1.05. Despite the rally, the stock remains down almost 50% year‑to‑date after industry shifts saw several miners pivot toward AI workloads amid rising costs and lower Bitcoin prices.
On operational metrics, Canaan reported $30 million in mining revenue for Q3 — a 241% increase year over year — and narrowed its net loss to $27 million versus $75 million a year earlier. The company mined 267 BTC during the quarter at an average realized revenue of $114,485 per coin, and it increased total holdings to 1,610 BTC as of the end of October.
Canaan’s stock rose after its Q3 earnings report on Tuesday
CEO: Bitcoin mining still a viable revenue stream during AI transition
CEO Nangeng Zhang told investors that while some mining firms are shifting capital and capacity toward AI infrastructure to chase higher-margin workloads, the move is gradual. Building AI‑ready facilities takes time and investment. Zhang argued that deploying additional Bitcoin miners continues to be an effective way to utilize available energy and generate near-term revenue rather than waiting years for AI deployments to scale.
“Our customers, including ourselves, are thinking about how to build AI-ready mining facilities for the future,” he said. “At this stage, deploying more Bitcoin miners is still the best way to allocate energy today and generate revenues from this date, not waiting for another one or two or three years.”
What this means for investors and the mining sector
Canaan’s earnings underscore a cyclical rebound in demand for ASIC miners as miners seek to capitalize on higher BTC prices and favorable mining economics. For investors, the results highlight that mining hardware makers can benefit quickly from order flows when miners expand. However, longer-term risks remain: sector exposure to Bitcoin price swings, competition from new hardware makers, and the industry’s gradual reallocation of compute resources toward AI and other applications.
Overall, Canaan’s Q3 report provides a clear example of how hardware demand, regional market dynamics, and strategic positioning around energy and facility buildouts shape outcomes in the evolving Bitcoin mining industry.
Source: cointelegraph
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