Canaan's Crypto Treasury Could Fund Nearly 20% of Its Market Value in Share Buybacks

Canaan, a Bitcoin mining machine manufacturer, has opened a new funding channel for share buybacks by authorizing management to sell part of its roughly $130 million digital asset treasury. The move could support per-share value but reduces reserves available to a loss-making business.

The company can use crypto proceeds under an existing buyback program, which began on Dec. 12, 2025, with a 12-month ceiling of $30 million for ADS or Class A ordinary share repurchases. As of May 19, Canaan had spent approximately $2 million to buy back about 2.8 million ADSs.

Canaan's operating loss reached $88.7 million in its first quarter, with a gross loss of $22.9 million and revenue of $35 million to $45 million for the second quarter. A well-timed buyback could improve per-share value but shrinks the reserve available for operations.