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SINGAPORE - Canaan Inc. (NASDAQ: CAN), a prominent player in the cryptocurrency mining industry with a market capitalization of $313 million, has announced a significant increase in its bitcoin production for May 2025, despite facing increased tariffs on its Malaysia-manufactured mining equipment. According to InvestingPro analysis, while the company maintains a healthy balance sheet with more cash than debt, it faces challenges with rapid cash burn and weak profit margins. The company produced a record 109 bitcoins in May, marking a 25% month-over-month increase and elevating its total bitcoin holdings to 1,466. Despite impressive revenue growth of 66% over the last twelve months, the company’s gross profit margin stands at -15%, reflecting operational challenges in the current market environment.
Nangeng Zhang, Canaan’s chairman and CEO, attributed the growth to strategic execution and favorable bitcoin market conditions. The company also reported a historical peak in installed computing power, with operational and installed hashrates at 7.27 EH/s and 8.75 EH/s, respectively. Canaan emphasized its commitment to efficient and sustainable growth, with an all-in power cost of US$0.046/kWh.
In addition to its operational achievements, Canaan’s executive leadership demonstrated confidence in the company’s trajectory by purchasing 817,268 American Depositary Shares at an average price of US$0.76 per ADS on June 9, 2025. Moreover, Canaan’s board of directors approved a US$30 million stock repurchase program on May 27, 2025, further underscoring their belief in the company’s long-term prospects. With the stock down 73% over the past six months and trading below its InvestingPro Fair Value, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through the Pro Research Report.
Conversely, Canaan and an institutional investor mutually agreed to terminate a second tranche agreement for US$100 million in preferred share financing, initially announced on March 10, 2025, due to unexpected market conditions.
Canaan’s recent expansion includes ramping up its North American mining operations by energizing an additional 0.91 EH/s across four projects in the region. The company’s global mining infrastructure also reported average miner efficiencies and installed power capacities, with a global average of 27.4 J/TH and 239.7 MW, respectively.
The information in this article is based on a press release statement from Canaan Inc. While analysts project sales growth for the current year, they don’t expect profitability, with a forecasted EPS of -$0.32 for 2025. The company’s next earnings report is scheduled for August 14, 2025.
In other recent news, Canaan Inc. reported its financial results for the first quarter of 2025, revealing a record number of shipments for its A15 series bitcoin mining rigs and a positive gross profit of $0.6 million. This marks a significant milestone for the company, as it achieved improved product pricing and record-high quarterly mining revenue despite ongoing challenges. Additionally, Canaan has announced a $30 million share buyback program, reflecting its confidence in the company’s business model and long-term growth potential. In a strategic move, Canaan’s CEO Nangeng Zhang and CFO James Jin Cheng have purchased 817,268 American Depositary Shares, signaling their belief in the company’s future prospects. Benchmark analysts recently adjusted their price target for Canaan to $2.00 from $3.00, while maintaining a Buy rating, indicating cautious optimism. These developments come amid Canaan’s ongoing efforts to strengthen its market presence in the cryptocurrency sector. The company’s commitment to its strategic plan is further underscored by its decision to repurchase shares in response to perceived undervaluation. Investors may view these actions as a reaffirmation of confidence in Canaan’s market position and strategic direction.
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