Canaan's board authorized selling part of its Bitcoin treasury to fund a $30 million buyback. Shares rose nearly 9% on Nasdaq after Tuesday's announcement.
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Canaan (CAN) said its board has authorized the sale of part of its Bitcoin holdings to fund a share repurchase program of up to $30 million, turning the miner's digital-asset inventory into buyback capital.
The company said Tuesday that Chairman and CEO Nangeng Zhang confirmed mining operations keep generating Bitcoin, providing a capital source the fleet replenishes. Spending part of the treasury does not end Canaan's exposure to the token.
Canaan said the strategy responds to market undervaluation. Its market capitalization trades below the combined value of its digital assets and available liquidity, which the company put at about $130 million in early August. Tuesday's announcement did not break out how much of that figure is Bitcoin and how much is other liquidity. The $30 million authorization is roughly a quarter of the asset base, and Canaan's Nasdaq-listed shares rose nearly 9% after the news.
The funding structure ties the buyback to Bitcoin's price. A slide in Bitcoin would shrink the asset buffer behind the program and pressure the financial position Canaan weighs when deciding timing. The authorization is a ceiling; it does not commit the company to spend the full amount. Canaan said the pace of purchases will depend on share price performance and its financial condition.
A difficult quarter preceded the announcement. Canaan reported a net loss of $88.7 million in the first quarter of 2026 on revenue of $62.7 million; a drop in Bitcoin's price weighed on results. The authorization is equal to almost half of one quarter's revenue. A lower share count would make future per-share earnings less negative even if net income stays the same. Canaan has also expanded its hardware lineup, including modular mining systems developed with Tether that separate compute from power.
Other public miners have used crypto holdings for spending. Quantum and Hyperscale sold crypto to fund AI data centers. Canaan is directing the proceeds to shareholders instead.
The repurchase program remains in effect through December 2026, Canaan said.
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