Canaan’s Bitcoin mining equipment revenue fell 96% in Q3 2026, dropping to $4.8 million from $118.6 million a year earlier. The ASIC designer disclosed the figures on November 10, reporting only 1.0 exahash per second (EH/s) of computing power sold during the quarter. The downturn comes as Canaan expands its own Bitcoin mining operations and pursues large-scale power infrastructure in Texas.

Independent Avalon A16/A16XP hardware testing from Red Panda Mining, published May 5, 2026. The reviewer measures real-world power and hashrate; the video predates Canaan’s Q3 results and is not a recording of its November earnings call. Credit: Red Panda Mining / YouTube.

Hardware revenue falls from $118.6 million to $4.8 million

Canaan’s unaudited release puts third-quarter product revenue at $4.8 million, compared with $13.6 million in Q2 and $118.6 million in Q3 2025. That represents a 64.7% sequential decline and a 95.95% year-over-year decline, calculated from the reported rounded dollar amounts. Management identified both lower computing power sold and lower average selling prices as contributing factors, citing weak demand and intense competition.

The company sold approximately 1.0 million terahashes per second of mining capacity—equivalent to 1.0 EH/s. Sold hashrate measures the aggregate rated computing capacity of equipment sold, not the number of ASIC chips, devices delivered to a particular mine, or power currently energized on the Bitcoin network. A retail miner’s headline TH/s rating also cannot be translated directly into revenue without model mix, pricing, and sales terms.

For context, the newer Avalon A16XP carries a manufacturer-rated 300 TH/s specification, while earlier Avalon models remain relevant to fleet economics. A 300 TH/s machine would require about 3,333 units to total 1.0 EH/s, but Canaan did not report selling 3,333 A16XPs. The ratio is only an illustration using one model’s nominal hashrate, not a unit-sales estimate.

Mining operations now bring in more revenue than hardware

Canaan generated $9.5 million from mining in Q3, compared with $30.6 million a year earlier, and reported producing 133 BTC. Mining accounted for roughly 65.5% of the company’s $14.5 million reported total revenue; product sales accounted for about 33.1%, with rounding and minor other revenue preventing exact totals. Its non-joint-venture installed mining capacity was approximately 10 EH/s. Installed capacity and energized hashrate are different measures, especially during curtailments.

Lower sales did not prevent an accounting profit. Canaan reported $8.0 million in GAAP net income, but the company also recorded a $51.9 million non-cash fair-value gain on cryptocurrency holdings and related instruments. Its operating loss was $42.9 million, wider than the $23.9 million operating loss reported for Q3 2025. Positive net income therefore should not be mistaken for a profitable core ASIC manufacturing business.

The next business may be power infrastructure

Canaan said a proposed 1-gigawatt development in Duval County, Texas, received a conditional “Studied Load – Firm” classification in ERCOT’s Batch Zero process, while a separate 1-gigawatt Zapata County project remains at an early stage. The classification is a grid-study milestone, not proof of grid energization, final approval, or completed data-center construction.

The company has already tested economic diversification through mining heat-recovery projects. Prior BitcoinVersus.Tech analysis of older Avalon models shows why joules per terahash affect whether machines remain online, while Bitmain’s newer hydro-cooled efficiency claims illustrate competitive pressure on established manufacturers.

Weak ASIC revenue does not establish the collapse of Bitcoin mining demand worldwide; Canaan’s results reflect its own product mix, customers, prices, and shipments. Still, a 96% manufacturer revenue drop alongside new energy-development plans indicates a marked shift in where one of Bitcoin mining’s original ASIC designers expects future value to emerge.

Sources and calculations: Canaan’s November 10, 2026 primary financial release; SEC exhibit containing the earnings release; The Block’s independent November 10 reporting; official Canaan product imagery; Red Panda Mining independent hardware test. Calculations from rounded company figures: (118.6 − 4.8)/118.6 = 95.95%; (13.6 − 4.8)/13.6 = 64.71%; 9.5/14.5 = 65.52%. The approximate 3,333-machine figure is illustrative only (1,000,000 TH/s divided by 300 TH/s per device), not reported sales.

Editor’s Note: Canaan’s Q3 2026 results are unaudited company disclosures, released November 10, 2026, and correspond to the quarter ended September 30. Sales revenue, nominal sold hashrate, installed mining capacity, and proposed electricity-project capacity must not be conflated. The Duval County grid classification remains conditional and the Zapata County site is preliminary. Reported non-cash gains are separate from underlying operating performance. The story’s 1200 × 630 colored-pencil cover is an original conceptual illustration, not photography of actual Canaan warehouses or mining sites; the neon-green publication watermark was applied to the bottom left. The Canaan product graphic is credited promotional material, the Red Panda Mining video is archival testing, and the source-labeled bar chart is original analysis. Actual public playback, mobile layout, and social-media embeds were not tested at drafting.

BitcoinVersus.Tech is volunteer-run and publishes independent educational technology reporting. An optional 5,000-satoshi donation supports ongoing research. Scan the original QR from a second screen with a compatible Bitcoin wallet; on mobile, use a wallet that supports scanning a saved image. Independently verify the recipient address 3C9o19EH5HSiwEPyCTmEKzxhNCbo2X6TTb and the payment amount before sending. Bitcoin transfers are generally irreversible.

We volunteer daily to ensure information on the BitcoinVersus.Tech platform is Verifiably True. Coverage is educational and informational and does not constitute financial or investment advice.