Canaan Leverages Crypto Treasury to Fund Share Buybacks
Canaan, a Bitcoin mining machine manufacturer, has opened up a new funding channel for share buybacks using its digital asset treasury. The company's management can now use crypto proceeds under an existing buyback program to repurchase shares.
The move could support the per-share value of Canaan's stock, but it would also shrink the reserve available for its loss-making Bitcoin mining and hardware business. As of May 19, Canaan had spent around $2 million to buy back about 2.8 million ADSs under the program.
The company's digital asset treasury is estimated to be worth around $130 million, while its cash balance as of March 31 stood at $43.5 million. Combining these figures with Canaan's market cap of $144.7 million on August 4, the total value sits roughly $28.8 million above the intraday market cap.