Bitcoin News Today: Canaan's Bitcoin Mining Energy Play Drives 21% Stock Rally

Canaan Inc. (NASDAQ: CAN) shares surged over 21% in pre-market trading on Tuesday after the crypto-mining hardware maker reported a record third-quarter revenue of $150.5 million, more than doubling year-over-year and far exceeding Wall Street forecasts. The stock's rally defied a significant earnings-per-share (EPS) miss, as the company attributed the revenue growth to surging demand for Bitcoin mining equipment and expanded self-operated mining operations.

The company's total revenue for Q3 2025 rose 104% year-over-year, driven by a 241% increase in mining revenue to $30.6 million and $118.6 million in product sales. This marked a stark turnaround from the prior year, when Canaan posted a $75 million net loss. Despite the revenue outperformance, Canaan's adjusted net loss widened to $27 million, or -$0.36 per share, compared to an expected -$0.01, due to elevated operational costs and one-time expenses related to supply chain adjustments.

The mining segment became a key growth driver, with Bitcoin mining revenue climbing to a record $30.6 million, fueled by a 37.7% increase in computing power sold to 10 exahashes per second (EH/s). The company mined 267 BTC during the quarter, boosting its cryptocurrency holdings to 1,582 BTC and 2,830 ETH, valued at approximately $189 million. Canaan also secured a major U.S. order for 50,000 Avalon A15 Pro machines, its largest single deal in three years.

Canaan's financial health improved markedly, with cash reserves rising 80.9% to $119 million and positive adjusted EBITDA of $2.8 million. The company's gross profit surged 78.6% quarter-over-quarter to $16.6 million, reflecting better product mix and cost controls. However, challenges persist, including rising Bitcoin mining difficulty and macroeconomic headwinds, particularly U.S. tariff policies that have increased operational costs in North America.

Investors reacted favorably to the results, sending shares to a 52-week high of $1.05 despite the EPS shortfall. Analysts cited the revenue beat and strong cash flow as positives, with Wall Street's median 12-month price target for Canaan at $3.00-71.6% above its November 17 closing price of $0.85. CEO Nangeng Zhang emphasized the company's pivot to AI-ready mining facilities, stating that Bitcoin mining remains a "best way to allocate energy" in the near term while AI infrastructure deployment lags.

Looking ahead, Canaan forecast Q4 2025 revenue of $175–205 million, well above the $148.3 million consensus estimate. The company plans to scale production of its A16 series miners and explore AI-integrated operations. However, risks remain, including Bitcoin price volatility and potential seasonal revenue declines in early 2026.