Cryptocurrency mining company Canaan experienced a 6.9% drop in its Nasdaq-listed shares on Tuesday, even though it reported a remarkable 121.1% increase in revenue, reaching $196.3 million for the fourth quarter. This surge was largely driven by increased hardware sales and enhanced mining capabilities.
Canaan's Bitcoin mining revenue saw a significant rise of 98.5% year-over-year, totaling $30.4 million, which contributed to its Bitcoin reserves reaching an impressive 1,750 BTC, valued at nearly $120 million. Additionally, the company expanded its Ether holdings to 3,950 ETH, estimated at $7.9 million.
This revenue figure marks Canaan's highest quarterly achievement in three years, bolstered by the sale of Bitcoin mining machines. During this period, the company delivered a record 14.6 exahashes per second (EH/s) of computing power. The surge in computing power sales was supported by a significant order from a major US-based institutional miner, leading to a 60% year-on-year increase.
On the mining operations front, the Singapore-headquartered firm reported an expansion of its installed hashrate to 9.91 EH/s, with 7.65 EH/s actively operational. Meanwhile, the overall Bitcoin network hashrate declined from its October peak of 1,150 EH/s to 980 EH/s, as miners decommissioned unprofitable units and shifted focus towards AI and high-performance computing.
Despite these positive developments, Canaan's share price fell by 6.87% to $0.56, positioning it among the lowest performers within the top 15 Bitcoin miners by market capitalization. Currently, Canaan's shares are down 18.1% year-to-date and have plummeted 70.2% over the past 12 months.
The company faces a looming threat of Nasdaq delisting, as it recently received a warning from the exchange to elevate its share price above $1, aligning with the minimum bid rule. Canaan has been granted a 180-day period, ending on July 13, to comply by maintaining its closing bid price at or above $1 for at least 10 consecutive trading days. The last instance of Canaan maintaining a closing price above $1 was on November 28, 2025.