Canaan Inc. (NASDAQ:CAN) stock fell Tuesday after the cryptocurrency mining hardware company reported mixed first-quarter results and issued second-quarter revenue guidance that came in well below Wall Street expectations.

First-Quarter Revenue And Earnings Weaken

First-quarter revenue declined to $62.69 million from $82.8 million a year earlier, although it slightly topped analyst estimates of $61.35 million. The company reported a quarterly loss of 13 cents per share, wider than analysts' expectations for a loss of 7 cents per share.

Product revenue fell to $42.9 million from $58.3 million a year ago, primarily due to lower computing power sales. Mining revenue declined to $19.1 million from $24.3 million, mainly because of lower average Bitcoin (CRYPTO: BTC/USD) prices, partially offset by higher energized mining computing power.

Gross Loss Widens Amid Market Pressure

Canaan posted a gross loss of $22.9 million for the quarter, compared with a gross profit of $646,000 a year earlier. Net loss widened to $88.7 million from $86.4 million in the prior-year period.

As of March 31, 2026, the company held cryptocurrency assets with a fair value of $66.2 million, including 802.6 Bitcoins owned by the company and 63.4 Bitcoins received as customer deposits. Cash and cash equivalents totaled $43.5 million.

Nordic Heating Project Expands Infrastructure Push

Canaan also announced it secured a contract through a competitive bidding process to supply hash-to-heat infrastructure for a Nordic district heating network.

The project will deploy Avalon A1566HA hydro-cooled mining units with a planned total capacity of about 8 megawatts. The company said around 2 MW is already operational and supplying hot water to local residents. Following the initial deployment, the customer placed an additional 6 MW order in March 2026.

Management said the project validates the company's hydro-cooling, thermal management and energy-integrated computing capabilities while demonstrating the scalability of hash-to-heat systems within sustainable energy infrastructure.

Management Highlights AI And Infrastructure Strategy

CEO Nangeng Zhang said the company used the challenging first quarter to improve execution discipline, enhance asset quality and expand its long-term positioning beyond mining hardware into energy and computing infrastructure.

Zhang said Canaan continued advancing its energy plus computing infrastructure strategy through the acquisition of the ABC project in Texas, which added low-cost mining assets and expanded the company's North American footprint.

He added that Canaan continues exploring artificial intelligence and high-performance computing opportunities while building scalable power and computing infrastructure.

CFO Jin "James" Cheng said the company maintained operational resilience through expense reductions, inventory optimization and increased North American exposure while preserving liquidity during market volatility.

Second-Quarter Outlook Misses Expectations

For the second quarter of 2026, Canaan expects revenue between $35 million and $45 million, well below analyst estimates of $95.94 million.

The company said it will continue monitoring global policy developments and market conditions and may revise its outlook as visibility improves.

Stock Near 52-Week Low

CAN Price Action: Canaan shares were down 13.94% at $0.41 at the time of publication on Tuesday. The stock is trading near its 52-week low of $0.38, according to Benzinga Pro data.

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