Canaan reported $8 million in third-quarter net income and announced an initial $20 million share repurchase program, as it balances Bitcoin market price and chart operations with power infrastructure development in Texas.
The company’s November 10 results show $14.5 million in revenue and approximately 1,875 BTC in treasury at September 30. Adjusted EBITDA was $22.4 million, a non-GAAP measure.
Mining Operations Generate Most Of Reported Quarterly Revenue
Canaan produced 133 BTC during the quarter. Mining operations generated $9.5 million in revenue, while mining equipment sales contributed $4.8 million. The company reported selling equipment representing 1 million terahashes per second of computing power.
The company said its non-joint-venture installed mining capacity was approximately 10 exahashes per second, with an all-in power cost of about $0.043 per kilowatt-hour.
Texas Power Projects Remain Subject To Further Approvals
The Duval County 1 GW power project received conditional classification under ERCOT’s Batch Zero process. Further studies and approvals are still needed. Canaan is also advancing a second 1 GW project in Zapata County at an earlier stage.
Canaan said its 49% interest in Project ABC, with 4.87 EH/s of installed capacity, generated more than $1.2 million in cash distributions to the company.
The new $20 million repurchase program falls within a $100 million board authorization. Canaan said it would retain a long-term digital asset holding strategy while selectively monetizing cryptocurrency to fund repurchases.
Prior Quarter Shows Revenue And Bitcoin Production Declines
Canaan’s September 8 second-quarter results provide a comparison. Revenue in that period was $31.9 million, including $17.7 million from mining and $13.6 million from products.
Against that base, third-quarter revenue of $14.5 million represents a decline of approximately 54.5%. Mining revenue fell about 46.3% to $9.5 million, while the equipment figure of $4.8 million was about 64.7% below the second-quarter product figure. These percentages are calculated from the company’s rounded disclosures.
Bitcoin production fell from 243 BTC in the second quarter to 133 BTC in the third, a reduction of 110 BTC, or about 45.3%. The treasury was also lower, at approximately 1,875 BTC compared with 1,915.50 BTC at June 30.
The second-quarter treasury included 3,951.70 ETH market price and chart. The third-quarter Bitcoin headline should not be treated as a complete reconciliation of all digital assets without checking the balance sheet and accompanying notes.
Earlier Repurchases Preceded The Newly Announced Buyback Program
As of September 8, Canaan said it had repurchased approximately 16.4 million American depositary shares for $7.4 million under its then-current program. Those completed purchases are distinct from the newly announced $20 million program.
The prior release said management was adopting a more active approach to capital allocation, including monetizing some cryptocurrency holdings to fund repurchases. The third-quarter update continues that stated approach.
Canaan reported second-quarter non-joint-venture installed computing power of 10.05 EH/s and an all-in power cost near $0.043 per kilowatt-hour. The third-quarter disclosures put the corresponding figures at approximately 10 EH/s and the same rounded electricity cost.
That comparison shows a larger change in reported output than in the two rounded capacity and power-cost measures. It does not, by itself, identify the contribution of uptime, network conditions or other operating factors to the production decline.
The third-quarter profit figure consequently sits alongside lower sequential revenue and production. Those operating comparisons are necessary to assess the results rather than reading the net-income headline as evidence that every part of the business expanded.
