Canaan authorized management to sell crypto holdings to fund up to $30M in stock buybacks. The miner held 1,915 BTC and 3,952 ETH worth $130M at end of June.
Alpha Score of 49 reflects weak overall profile with strong momentum, poor value, moderate quality. Based on 3 of 4 signals – score is capped at 90 until remaining data ingests.
Canaan has authorized management to sell part of its Bitcoin and Ethereum holdings to finance share repurchases under an existing $30 million program.
The Nasdaq-listed Bitcoin miner said Aug. 4 that it will use proceeds from digital asset sales to buy back its American depositary shares or Class A ordinary shares. The program runs for 12 months beginning Dec. 12, 2025.
Canaan did not disclose how much cryptocurrency it intends to sell or when sales will occur. It also did not commit to using the entire remaining authorization.
Chairman and CEO Nangeng Zhang said the company’s mining operations provide a continuing source of Bitcoin that can be used as capital.
“At current trading levels, we believe Canaan’s market value does not fully reflect the value of our digital asset holdings, cash position, and the strength of our underlying business,” Zhang said.
Canaan held 1,915 BTC and 3,952 ETH at the end of June. The company valued the combined portfolio at roughly $130 million using market prices from Aug. 3.
Its Bitcoin balance increased by 49 BTC in June after accounting for operating costs and BTC received as payment for mining-machine sales. Canaan mined 64 BTC during the month.
At the end of March, Canaan held $43.5 million in cash. It also reported that 905 BTC had been pledged against secured term loans, while another 100 BTC had been transferred to a fixed-term product.
Further transactions will depend on Canaan’s share price, broader market conditions, working capital requirements, and board approval. Repurchases may take place through open-market transactions, block trades, or privately negotiated deals.
As of May 19, Canaan had spent roughly $2 million to repurchase 2.8 million ADSs. This left a nominal $28 million under the authorization at the time, although the company has not disclosed whether it completed additional purchases before the latest announcement.
Canaan’s ADSs were trading near $0.19 on Aug. 6, well below Nasdaq’s $1 minimum bid-price requirement. Each ADS represents 15 Class A ordinary shares.
Nasdaq granted the company an additional 180 days, until Jan. 11, 2027, to regain compliance. Canaan must maintain a closing bid price of at least $1 for a minimum of ten consecutive business days.
The company has not directly linked the buyback decision to its listing deficiency. Still, repurchases could reduce the number of outstanding shares and offer price support, while selling cryptocurrency would lower the reserves available for mining operations, debt obligations, and working capital.
The decision follows improvements in Canaan’s North American mining efficiency despite underused capacity.
Canaan achieved fleet efficiency of 17.9 joules per terahash across its North American non-joint venture operations in May. That represents an 11% improvement from the previous year and a roughly 4% gain from the 18.7 J/TH recorded in March and April.
Operating activity nevertheless remained below installed capacity. At the end of May, Canaan had 10.05 exahashes per second of installed non-joint venture capacity, while only 6.47 EH/s was operating after a hosting agreement expired.
By June, non-joint venture operating hashrate had fallen further to 3.36 EH/s. Joint venture operations recovered to 4.09 EH/s following wildfire-related disruption at facilities in West Texas.
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