Canaan Can Buy Back Nearly 20% of Market Value with Crypto Holdings

Canaan, a Bitcoin mining machine manufacturer, has opened a new funding channel for share buybacks. The company can use crypto assets from its approximately $130 million treasury to fund repurchases under an existing buyback program.

The move could support per-share value but reduces the reserve available for Canaan's loss-making Bitcoin mining and hardware business. As of May 19, the company had spent around $2 million to buy back about 2.8 million ADSs (American Depositary Shares), leaving a nominal capacity of around $28 million.

With a market capitalization of approximately $144.7 million at Aug. 4 prices, Canaan's treasury value represents roughly 19.9% of its market cap. However, the company has not disclosed any new sale or repurchase as of Aug. 4, leaving the current buyback capacity and liquidity impact unknown.