Canaan's Crypto Holdings Fuel Share Buyback Plan

Canaan Inc., a Chinese bitcoin mining hardware maker, has seen its shares jump by 15.22% after announcing plans to monetize part of its digital asset treasury to fund buybacks of its American Depositary Shares.

The company's cryptocurrency holdings alone are worth more than the entire company at its current stock price, according to a recent valuation.

Canaan held approximately $130 million in digital assets as of August 3, comprising 1,915 bitcoin and 3,952 ether, while its market capitalization stood at just EUR 110.02 million.

The disconnect between the company's balance sheet and stock price has prompted management to take action, with CEO Nangeng Zhang authorizing the sale of a portion of the Digital Asset Treasury to finance buybacks.