Canaan Stock Falls 7% Despite Reporting Strongest Quarterly Revenue in Three Years

Crypto mining firm Canaan saw its shares slide nearly 7% on Tuesday, even after posting its strongest quarterly revenue in three years. The company reported fourth-quarter revenue of $196.3 million, marking a 121.1% year-over-year increase driven by higher hardware sales and improved mining performance.

Canaan Q4 Revenue Surges 121% Year Over Year

Canaan’s Bitcoin mining revenue rose 98.5% compared to the same period last year, reaching $30.4 million. The company also expanded its digital asset holdings, with its Bitcoin treasury climbing to 1,750 BTC, valued at approximately $120 million. In addition, Ether holdings increased to 3,950 ETH, worth nearly $7.9 million.

Hardware demand played a major role in the revenue jump. Canaan shipped a record 14.6 exahashes per second (EH/s) of computing power during the quarter, supported in part by a large order from a U.S.-based institutional mining client. Computing power sales increased 60% year over year.

Nasdaq Delisting Risk Pressures CAN Stock

Despite the strong financial results, Canaan’s stock fell to $0.56, well below the $1 minimum bid requirement set by Nasdaq. The company has until July 13 to regain compliance by maintaining a closing price above $1 for at least 10 consecutive trading days.

Year to date, Canaan shares are down 18.1% and have declined more than 70% over the past 12 months, reflecting ongoing pressure in the crypto mining sector.

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