Canaan breaks efficiency record while one-third of capacity sits idle

Canaan has achieved a record fleet efficiency of 17.9 J/TH in North America even as roughly 36% of its installed mining capacity remained inactive at the end of May.

According to a June operational update from Canaan, the Nasdaq-listed Bitcoin miner and ASIC manufacturer improved the efficiency of its North American self-mining operations to 17.9 joules per terahash in May 2026, setting a new company record and improving 11% from the same period last year.

The latest figure also represents progress from the 18.7 J/TH reported across the company’s North American non-joint venture operations in March and April. Based on Canaan’s disclosed data, the move from 18.7 J/TH to 17.9 J/TH amounts to an improvement of about 4% in two months.

At the same time, company data showed that operational activity remained below installed capacity. Canaan reported an installed hashrate of 10.05 EH/s at the end of May, while its effective operating hashrate stood at 6.47 EH/s. The company attributed the gap to the expiration of a hosting agreement.

Fleet upgrades continue to improve mining performance

Beyond North America, Canaan reported that its global mining fleet reached an average efficiency of 23.7 J/TH during May, representing a 13.5% improvement from a year earlier.

Production figures also moved higher. Company data showed that Canaan mined 90 Bitcoin during the month and received another 24 BTC from customers. As a result, its digital asset holdings increased to approximately 1,867 BTC and 3,952 ETH, the largest treasury balance disclosed by the company to date.

Commenting on the results, Canaan chairman and chief executive Nangeng Zhang described the May performance as evidence of resilience despite difficult market conditions.

The efficiency gains arrive only weeks after Canaan reported weak first-quarter financial results. As crypto.news reported earlier, the company generated $62.7 million in revenue during Q1 2026, down sharply from $196.3 million in the previous quarter. Canaan also posted a net loss of $88.7 million and recorded a gross loss of $22.9 million, which included a $25 million inventory write-down.

In the company’s May 19 earnings release, Zhang said Canaan faced Bitcoin price volatility, compressed hashprice conditions, elevated energy costs, and weather-related disruptions in North America during the quarter.

Capacity expansion offsets hosting-related setbacks

While a portion of the company’s fleet remained offline, Canaan continued adding new infrastructure through acquisitions and partnerships.

According to the company, a transaction with Cipher Mining added a 49% stake in several West Texas projects. The deal contributed approximately 4.4 EH/s of hashrate capacity and 120 megawatts of power capacity to Canaan’s development pipeline.

Investors, however, continue to weigh operational improvements against ongoing financial challenges. As previously reported by crypto.news, Canaan received a second Nasdaq non-compliance notice in January after its share price remained below the exchange’s $1 minimum bid requirement. The company has until July 13, 2026, to regain compliance.

Market expectations for the current quarter also remain subdued. In its first-quarter earnings report, Canaan guided for second-quarter revenue between $35 million and $45 million, substantially below analyst estimates of about $96 million.

The company said it would continue monitoring market conditions and policy developments and could revise its outlook as visibility improves.

“Beyond our mining operations, we continue to advance initiatives that demonstrate the broader potential of our infrastructure platform…As demand for AI and computing infrastructure continues to grow, we believe Canaan’s strengths in hardware innovation and energy-efficient systems make us well-positioned to unlock new opportunities where energy and computing can create value together,” said Zhang.