Canaan Liquidates Bitcoin Hoard to Repurchase Shares
Canaan, a leading bitcoin miner and hardware manufacturer, has taken an unusual step to prop up its beleaguered share price. The company's cryptocurrency holdings are valued at around $130 million, surpassing its entire market capitalization of €109.85 million.
Management received approval on August 4 to sell part of its digital assets and use the proceeds to repurchase American Depositary Shares (ADS). This move aims to close the gap between Canaan's intrinsic worth and the current share price, which has been battered by a turbulent market.
The buyback program carries a ceiling of $30 million through December 2026. Analysts see considerable upside if the plan gains traction, with a consensus price target of €1.49, implying potential gains of around 784 percent from current levels.