Canaan Inc (CAN) shares slid after the Bitcoin miner posted a wider-than-expected adjusted loss for the first quarter of 2026 and forecasted second-quarter revenue at less than half of analyst estimates.
The company reported normalised earnings per share of -$0.09, missing analyst estimates of -$0.01, according to Yahoo Finance data. Canaan reported total revenue of $62.7mn, narrowly above the bottom of its guided range of $60mn to $70mn.
For the second quarter, Canaan forecast revenue of $35mn to $45mn, less than half the consensus estimate of $98.1mn. The company attributed its forecast to "near-term market conditions and evolving customer dynamics."
Installed mining computing power rose 66% year over year to 11 EH/s, while the company produced 257 bitcoins during the quarter and grew its cryptocurrency treasury to a record 1,807 Bitcoin (BTC) and 3,951 Ether (ETH).
Canaan shares were trading at $0.4173, down 13.5% on the day, at 15:16UTC.
Energy expansion
The earnings miss, along with the disappointing forecast, comes as Canaan seeks to transition from pure Bitcoin miner to a broad "pivot to energy" strategy, highlighting investments in power infrastructure and projects designed to lower energy costs and expand its mining footprint.
The strategy includes investments in West Texas mining projects, heat-recovery systems and gas-to-computing initiatives aimed at securing cheaper energy and improving operating efficiency.
Speaking ahead of the earnings release, vice president of capital markets and corporate development Leo Wang said the company sees opportunities in power and energy assets even as other miners reposition around AI infrastructure and consolidation accelerates across the industry.
"The fully pivot from bitcoin mining to AI HPC is attractive for investors... but on a more fundamental level, it actually gives you a disadvantage in terms of relationship with the grid," Wang told Sandmark. The company is targeting up to one gigawatt of operating power capacity through acquisitions by year-end.
Heat strategy
The strategy also includes heat-recovery initiatives, an area the executive said could create additional uses for mining infrastructure beyond Bitcoin production.
"Bitcoin mining is just a byproduct of the regular product of heat," Wang said, pointing to projects that reuse excess computing heat for greenhouses, hot water systems and residential heating.
The approach is already taking shape. Earlier on 19 May, Canaan said its mining systems would support a Nordic district heating project expected to serve roughly 2,800 homes.
