Canaan Inc

Canaan Inc (NASDAQ: CAN) is a leading provider of high-performance computing solutions powered by its proprietary application-specific integrated circuit (ASIC) technology. Operating as a fabless integrated circuit (IC) designer, the Company manages both the front-end and back-end stages of IC development. Its core expertise lies in applying ASIC innovation to Bitcoin mining, where it designs and manufactures advanced mining machines for customers worldwide.

Key Business Updates

• Record-Breaking Quarter with Robust Revenue Growth: Canaan Inc. (NASDAQ: CAN) reported a record-breaking second quarter for the period ended June 30, 2025, achieving its strongest performance in ten quarters. Total revenues reached USD 100.2 million, exceeding prior guidance and marking a 39.5% year-over-year (YoY) increase. The surge was driven by diversified revenue streams, resilient operations, and successful deployment across multiple global mining sites. This outcome reflects Canaan’s ability to sustain growth momentum amid evolving macroeconomic challenges and tariff pressures.
• Strength in Bitcoin Mining and Treasury Expansion: The Company’s bitcoin mining revenue soared 201.6% YoY to an all-time high of USD 28.1 million, underpinned by enhanced mining efficiency and expanded hashrate capacity. Canaan mined 284 bitcoins during the quarter at an average revenue of approximately USD 98,866 per bitcoin. The Company’s bitcoin treasury grew to 1,483.5 bitcoins by quarter-end and further to 1,511 by July-end 2025, highlighting its disciplined long-term accumulation strategy and commitment to value preservation through vertical integration.
• Strong Sales and Computing Power Deployment: Product sales contributed USD 71.9 million to total revenue, up both sequentially and YoY, driven by higher average selling prices and growing demand for the A15 series mining rigs. Total computing power sold reached 6.4 million TH/s, representing a 16.5% sequential and 3.0% annual increase, despite ongoing tariff headwinds. The Company strengthened its client base, securing recurring orders from prominent U.S. mining firms such as Cipher Mining Inc. and Cleanspark, and enhanced its local manufacturing presence in the U.S., Malaysia, and East Asia to improve supply chain resilience.
• Operational Efficiency and Gross Profit Turnaround: Canaan delivered a significant turnaround in profitability with a gross profit of USD 9.3 million, compared to a gross loss of USD 19.1 million in the prior-year period. The improvement was supported by a reduction in inventory write-downs to USD 1.0 million, compared with USD 17.3 million in the same quarter last year. Despite a rise in mining-related depreciation to USD 10.5 million, operational efficiencies and cost management initiatives contributed to the recovery in margins and overall financial health.
• Controlled Operating Expenses and Improved Profitability Metrics: Total operating expenses stood at USD 36.4 million, down sequentially from USD 38.3 million in the prior quarter. Research and development expenses were USD 16.4 million, reflecting continued investment in ASIC innovation, while sales and marketing expenses increased to USD 4.5 million, driven by higher staffing and promotional activities. General and administrative costs remained stable at USD 16.4 million. As a result, loss from operations narrowed to USD 27.1 million, showing material progress from USD 46.6 million in the year-ago period.
• Substantial Gains from Fair Value Adjustments and Reduced Net Loss: Canaan recorded notable gains from fair value adjustments—USD 10.6 million from cryptocurrency assets and USD 23.4 million from financial derivatives—reflecting the higher bitcoin price as of June 30, 2025. These gains offset losses from other financial instruments and led to a significant reduction in net losses. The Company reported a net loss of USD 11.1 million, a substantial improvement compared to USD 86.4 million in the first quarter of 2025. On a per-share basis, basic and diluted net loss per ADS was USD 0.03, versus USD 0.27 in the preceding quarter. Non-GAAP adjusted EBITDA turned positive at USD 25.3 million, reflecting strong operational leverage.
• Strategic Realignment and Shareholder Confidence: During the quarter, Canaan announced a strategic realignment to sharpen its focus on core cryptocurrency operations—namely bitcoin mining machine sales, self-mining, and consumer mining products—while discontinuing its non-core AI semiconductor unit. In addition, the Company’s leadership demonstrated confidence in its long-term outlook through open-market purchases, with the CEO and CFO acquiring over 817,000 ADSs at an average price of USD 0.76 per ADS. Canaan also initiated a USD 30 million share repurchase program, repurchasing 3.65 million ADSs by mid-August 2025. These actions underscore management’s conviction in the Company’s strategic trajectory, financial resilience, and commitment to shareholder value creation.

Technical Observation (on the daily chart):

Canaan’s stock has broken out sharply from months of consolidation, surging above its key moving averages on strong volume and signaling renewed bullish momentum. The RSI at 85 indicates overbought conditions, suggesting a possible short-term pullback or pause after the rally. Overall, momentum remains positive, but short-term volatility is likely as the stock digests recent gains.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Canaan Inc (NASDAQ: CAN) at the closing market price of USD 1.31 as of Oct 03,2025. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is October 03,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.