Canaan Inc. reported a surprise third-quarter profit driven by a $51.9 million fair-value gain on its bitcoin holdings, even as its core mining-rig business collapsed.
Total revenue fell to $14.5 million from $150.5 million a year earlier, with product sales dropping 96% to $4.8 million.
The company posted an $8.6 million gross loss and a $42.9 million operating loss, and without the fair-value gains adjusted EBITDA would have been a loss of about $29.5 million.
Canaan held 1,875.5 bitcoin at the end of September, including 517.5 owned outright, and mined 133 new coins during the quarter.
The board approved a new $100 million share-repurchase authorization and launched an initial $20 million program, while also planning a 1-for-25 reverse ADS split to regain Nasdaq compliance.
The firm is shifting toward power and compute infrastructure, with a 1-gigawatt project in Duval County, Texas, receiving a conditional grid-connection classification and a second project in Zapata County in early development.
For the fourth quarter, Canaan expects revenue between $18 million and $22 million.