Canaan, a leading Bitcoin mining equipment manufacturer, reported a net loss of $88.7 million for the first quarter of 2026, as revenues fell to $62.7 million. The company attributed the loss to a significant drop in Bitcoin prices and a $25 million inventory write-down, which led to a 75% decline in equipment sales compared to the previous quarter. Despite expanding its self-mining capacity by 66% year-over-year, Canaan's efforts were insufficient to offset the financial impact. The company projected further revenue contraction for the second quarter, estimating between $35 and $45 million. Canaan's shares reflected the challenging market conditions, closing down 3.54% on Monday and dropping an additional 7.71% in pre-market trading on Tuesday. The broader mining sector also faced difficulties, with companies like Riot Platforms and Core Scientific reporting increased losses.