This tuesday, the official publication of the Canaan earnings report for the third quarter of 2025 triggered an immediate spike in the value of its shares on the Nasdaq. According to the company itself in its financial statement, this positive performance occurs paradoxically while the general market faces difficulties, demonstrating remarkable operational strength. The firm has managed to capture the attention of institutional and retail investors thanks to substantial growth in its main business lines.
The data presented is compelling, showing that total revenues reached $150.5 million, which represents a 104% year-over-year increase and a 50% sequential growth compared to the previous quarter. Breaking down these figures, product sales generated $118.6 million, while self-mining revenue jumped 241%, reaching $30.6 million. Furthermore, although the company reported a net loss of $27.7 million, this figure indicates a significant recovery compared to the massive losses of $75.6 million recorded in the same period last year.
The company’s cash position strengthened to $119.2 million, largely driven by a $72 million strategic investment from institutional players like Galaxy Digital. Additionally, the crypto asset treasury expanded robustly, accumulating reserves of 1,582 BTC and 2,830 ETH by the end of the quarter, figures that increased even further by the end of October. This capital backing is vital, as it allows these tech companies to continue innovating, securing massive orders such as the recent order for 50,000 mining machines for a US client.
Can the Mining Sector Decouple from Spot Price Volatility?
It is fascinating to observe how Canaan shares reacted to the upside, trading near $0.988, just as the crypto market suffered intense selling pressure overnight. On the other hand, Bitcoin dropped below $90,000 for the first time since April 2025, although it subsequently managed to recover ground to the $93,500 zone. This divergence suggests that the stock market is valuing production efficiency and physical infrastructure expansion over the immediate price action of the underlying digital asset in the short term.
Looking ahead, management projects estimated revenues between $175 and $205 million for the fourth quarter of 2025, based on current market conditions evolution. However, continued success will depend on the firm’s ability to maintain its positive gross margins, which recently reached $16.6 million. The outlook for miners appears to be shifting towards a more hybrid and resilient business model, which could define the sector’s stability for the next fiscal cycle.
