Why Did Canaan's Stock Drop Despite Three-Year High Revenue?

Strong Earnings, But Stock Dips

Canaan's Q4 revenue surged 121.1% YoY to $196.3 million, marking the company's highest quarterly revenue in three years. This growth was driven by strong sales of mining hardware and improved mining operations.

Despite these impressive figures, Canaan's stock fell by 6.9% on Nasdaq. The market reaction was unexpected, possibly due to broader market sentiment toward crypto or profit-taking after a recent rally.

Bitcoin Mining Revenue Soars

Bitcoin mining contributed $30.4 million in revenue, up 98.5% YoY. This helped the company grow its BTC reserves to a record 1,750 BTC, valued at nearly $120 million.

Canaan also increased its Ethereum holdings to 3,950 ETH, worth around $7.9 million, highlighting its diversified mining strategy across multiple cryptocurrencies.

Record Hashrate Delivery

In addition to mining revenue, Canaan's mining hardware sales were robust. The company delivered 14.6 EH/s of hashpower during the quarter, a new record, fueled by strong global demand for Bitcoin miners.

These results show Canaan's continued growth in both hardware and mining operations, though investor sentiment remains cautiously optimistic.