Canaan Inc., one of the biggest names in Bitcoin mining hardware, just posted a quarter that makes its shareholders wish they'd invested in literally anything else. The Singapore-based company reported a net loss of $97.6 million for Q2 2026, a staggering deterioration from the $11.1 million loss it recorded in the same period last year.

Revenue came in at $31.9 million, representing a 68% collapse year-over-year and a 49% drop from the previous quarter.

Bitcoin prices slid from roughly $82,000 to approximately $58,000 during Q2 2026, and that decline rippled through every line of Canaan's income statement.

The company also took a $25.3 million inventory write-down during the quarter, a painful acknowledgment that its stockpiled mining rigs are worth considerably less than what Canaan paid to produce them. That write-down was the primary driver behind a gross loss of $29.3 million, meaning Canaan couldn't even cover its cost of goods sold with revenue.

Self-mining operations didn't provide much of a cushion either. Canaan mined 243 BTC during the quarter, but at depressed prices, those coins generated far less revenue than they would have just months earlier.

Not everything in the report reads like a distress signal. Canaan ended the quarter holding a record digital asset treasury of 1,915.5 BTC and 3,951.7 ETH. The company also grew its non-joint-venture installed hashrate to 10.05 EH/s, up 23.3% from the same period last year.

The company has also been buying back its own stock, repurchasing approximately 16.4 million American Depositary Shares for $7.4 million as of September 8, 2026. At those prices, that works out to roughly $0.45 per ADS.

Management's guidance for Q3 2026 is sobering. Revenue is projected at $11 million to $15 million, which would represent yet another sequential decline from an already brutal quarter. If the midpoint of that range holds, Canaan would be generating roughly one-fifth of the revenue it produced in Q2 2025.

Canaan is one of the world's largest publicly traded manufacturers of application-specific integrated circuit (ASIC) miners, the specialized chips that power Bitcoin's proof-of-work network. Canaan's competitors, including Bitmain and MicroBT, face similar headwinds, though as private companies their financial details are harder to scrutinize. Publicly traded miners that operate their own fleets, like Marathon Digital and Riot Platforms, also feel the squeeze from lower Bitcoin prices, but they don't carry the same inventory risk that a hardware manufacturer does.

Canaan's record Bitcoin and Ethereum treasury adds another layer of complexity. Holding 1,915.5 BTC at current prices represents a meaningful reserve, but it's also an unrealized position that fluctuates with the market.

For investors watching the mining sector, the Q3 guidance range of $11 million to $15 million is perhaps the most telling number in the entire report. It suggests management doesn't see a near-term recovery in hardware demand and is essentially bracing for continued pain through at least the end of the quarter.