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 December 12, 2025, according to the company's August 4 announcement. The company did not disclose how much cryptocurrency it intends to sell or when any sales will occur, and has not committed to using the entire remaining authorization. Following the announcement, Canaan's stock jumped between approximately 5.9% and nearly 9%, reflecting strong market confidence in the strategic move.
Canaan held 1,915 BTC and 3,952 ETH at the end of June 2026, with the company valuing the combined portfolio at approximately $130 million using market prices from August 3. CEO Nangeng Zhang framed the decision as a reflection of disciplined capital allocation, noting that it expresses confidence in the company's long-term prospects. The Bitcoin balance increased by 49 BTC in June after accounting for operating costs and BTC received as payment for mining-machine sales, while Canaan mined 64 BTC during the month. As of May 19, Canaan had spent approximately $2 million to repurchase 2.8 million ADSs, leaving 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.
The decision follows improvements in Canaan's North American mining efficiency despite underused capacity. The company achieved fleet efficiency of 17.9 joules per terahash across its North American non-joint venture operations in May, representing an 11% improvement from the previous year and a roughly 4% gain from the 18.7 J/TH recorded in March and April. However, operating activity remained below installed capacity, with Canaan having 10.05 exahashes per second of installed non-joint venture capacity while only 6.47 EH/s was operating after a hosting agreement expired.
Canaan's ADSs were trading near $0.19 on August 6, well below Nasdaq's $1 minimum bid-price requirement. Each ADS represents 15 Class A ordinary shares, and Nasdaq granted the company an additional 180 days until January 11, 2027, to regain compliance. The company must maintain a closing bid price of at least $1 for a minimum of ten consecutive business days. While Canaan has not directly linked the buyback decision to its listing deficiency, 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.
