Canaan Sells Crypto Holdings for Share Buybacks Amid Market Valuation Gap

Canaan, a Nasdaq-listed Bitcoin mining rig manufacturer, has announced its intention to sell a portion of its cryptocurrency holdings to fund share buybacks. The company's board approved the American depositary share (ADS) buyback plan in December 2025.

The decision comes as Canaan's market capitalization currently trails the combined value of its cryptocurrency holdings and cash-equivalent assets, valued at approximately $130 million based on August 3 market prices.

Share buybacks typically signal management's belief that the stock is undervalued. By using crypto proceeds to repurchase ADSs, Canaan aims to return value to shareholders while potentially supporting its share price.