Bitcoin News Update: Canaan's Strategic Move in Bitcoin Mining Energy Sparks 21% Surge in Shares

Canaan Inc. (NASDAQ: CAN) saw its stock jump more than 21% in pre-market trading on Tuesday after the crypto-mining hardware manufacturer announced record-breaking third-quarter revenue of $150.5 million. This figure more than doubled from the same period last year and far surpassed analyst expectations. The share price rally came despite a notable miss on earnings per share (EPS), with the company crediting its revenue surge to

and the expansion of its own mining operations.

For the third quarter of 2025, the company’s total revenue soared by 104% year-over-year, fueled by a 241% jump in mining income to $30.6 million and $118.6 million from product sales. This was a sharp reversal from the previous year, when

reported a net loss of $75 million. Despite the strong revenue, to $27 million, or -$0.36 per share, compared to the anticipated -$0.01, mainly due to higher operating expenses and one-off costs tied to supply chain changes.

The mining division emerged as a major growth engine, with mining revenue reaching an all-time high of $30.6 million, driven by a 37.7% rise in computing power sales to 10 exahashes per second (EH/s). During the quarter, the company mined 267 BTC, raising its crypto reserves to 1,582 BTC and 2,830 ETH, together valued at about $189 million. for 50,000 Avalon A15 Pro units, marking its largest single order in three years.

Canaan’s financial position strengthened considerably, with cash holdings climbing 80.9% to $119 million and adjusted EBITDA turning positive at $2.8 million. Gross profit jumped 78.6% from the previous quarter to $16.6 million, reflecting improved product mix and tighter cost management. Nonetheless, the company continues to face obstacles such as increasing Bitcoin mining difficulty and broader economic challenges,

that have pushed up North American operating expenses.

Investors responded positively to the report, pushing the stock to a 52-week high of $1.05 despite the EPS miss. Analysts highlighted the revenue outperformance and robust cash flow, 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.

the company’s shift toward AI-compatible mining infrastructure, noting that Bitcoin mining remains the “most effective use of energy” in the short term while AI deployment is still catching up.

Looking forward, Canaan projects fourth-quarter 2025 revenue between $175 million and $205 million, well ahead of the $148.3 million consensus. The company intends to ramp up production of its A16 series miners and pursue AI-driven operations. However, it cautioned that risks such as Bitcoin price swings and possible seasonal revenue drops in early 2026 remain.