Canaan, a cryptocurrency miner and manufacturer, experienced a perplexing market reaction on Tuesday, February 10, 2026, as its stock (CAN) on the Nasdaq fell by 6.9% despite reporting its strongest quarterly revenue in three years. The Singapore-based company posted a 121.1% year-on-year increase in revenue, reaching $196.3 million in the fourth quarter. This surge was primarily driven by increased hardware sales and robust mining performance.
The company's Q4 success was fueled by several factors. Canaan achieved record quarterly computing power sales of 14.6 EH/s, a 60.9% year-over-year increase, propelled by significant orders from North American entities. A "milestone order" from a U.S.-based institutional miner notably contributed to this achievement. Additionally, Canaan's Bitcoin mining revenue saw a 98.5% year-on-year increase, climbing to $30.4 million. During the quarter, Canaan mined 300 Bitcoins, realizing an average revenue of $101,304 per Bitcoin.
Canaan's cryptocurrency holdings also reached record levels, with its Bitcoin treasury hitting 1,750 BTC (valued at nearly $120 million) and its Ether holdings increasing to 3,950 ETH (worth $7.9 million). The company also expanded its installed hashrate to 9.91 EH/s, with 7.65 EH/s actively operating during the quarter.
Despite these positive indicators, Canaan shares experienced a significant downturn, ending the day down 6.87% at $0.56, positioning it among the lowest-performing Bitcoin miners by market capitalization. This decline exacerbates concerns about Canaan's risk of being delisted from the Nasdaq. As of February 10, 2026, the company's stock is down 18.1% year-to-date and 70.2% over the last 12 months.
Adding to the uncertainty, Canaan had previously received a warning letter from Nasdaq on January 16, 2026, stating that its share price must rise above $1 to meet the exchange's minimum bid rule or face delisting. Nasdaq has granted the company a 180-day grace period to regain compliance.
Looking ahead, Canaan anticipates first-quarter 2026 revenue to be in the range of $60-70 million, a considerable drop from the fourth quarter's performance. This guidance reflects "near-term market conditions and evolving customer dynamics," according to the company.
In light of these factors, Canaan's CFO, Jin "James" Cheng, emphasized the company's commitment to prudent resource management and operational resilience as it navigates near-term market volatility while preparing to capitalize on future growth opportunities. Despite a strong Q4, Canaan reported a net loss of US$85.0 million, driven by fair-value and non-cash items. The company's gross profit turned positive at US$41.2M for 2025.