Canaan Sells Bitcoin to Fund Stock Buybacks Amid Nasdaq Deadline

Canaan, a Singapore-based firm, is taking drastic measures to revive its struggling stock price. The company's cryptocurrency holdings are worth approximately $130 million, while its market capitalization sits at just €109.85 million.

This significant disconnect has led management to implement a two-pronged strategy: sell digital assets to fund share buybacks and simultaneously attempt to lift the stock price above the Nasdaq's $1 minimum bid requirement before the looming deadline.

The company will selectively liquidate portions of its Bitcoin and Ethereum reserves, with up to $30 million earmarked for repurchases through December 2026. This move is aimed at closing the gap between share price and underlying asset value, rather than deleveraging.