Canaan has authorized management to sell part of its Bitcoin and Ethereum holdings to finance share repurchases under an existing $30 million program.
Summary
- Canaan’s crypto treasury was worth about $130 million as of Aug. 3.
- The miner held 1,915 BTC and 3,952 ETH at the end of June.
- Canaan had spent $2 million on buybacks as of May 19.
- Its Nasdaq-listed shares must regain the $1 minimum bid price by Jan. 11, 2027.
Canaan opens crypto treasury to fund buybacks
Nasdaq-listed Bitcoin miner Canaan has authorized management to monetize part of its digital asset treasury and use the proceeds to repurchase its American depositary shares.
The purchases will fall under an existing program that allows Canaan to buy back up to $30 million of its ADSs or Class A ordinary shares during the 12 months beginning Dec. 12, 2025, according to the company’s Aug. 4 announcement.
Canaan did not disclose how much cryptocurrency it intends to sell or when any sales will occur. The company also did not commit to using the entire remaining authorization.
Canaan did not disclose how much cryptocurrency it intends to sell or when any sales will occur. The company also did not commit to using the entire remaining authorization.
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 approximately $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.
Crypto holdings reached $130 million
Canaan held 1,915 BTC and 3,952 ETH at the end of June. The company valued the combined portfolio at approximately $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.
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.”
Canaan said it was trading below the combined value of its cryptocurrency holdings and the cash and cash equivalents reported at the end of March. However, the comparison does not account for the company’s liabilities or restrictions affecting parts of its treasury.
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.
Mining efficiency improves as capacity stays idle
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. It marlet, 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.
Nasdaq compliance remains a risk
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.
