Canaan opens crypto funding channel for share buybacks, risking cash reserves

Canaan, a Bitcoin mining machine manufacturer, has initiated a funding channel for share buybacks, allowing management to sell part of its approximately 130 million dollar digital asset treasury. This move could support per-share value but may reduce reserves for its loss-making Bitcoin mining and hardware operations. An announcement filed with the SEC on Aug. 4 permits management to utilize crypto proceeds under an existing buyback program, although details on treasury sales or repurchases remain undisclosed. The buyback program, which began on Dec. 12, 2025, has a 12-month ceiling of 30 million dollars for repurchases of ADS or Class A ordinary shares. As of May 19, Canaan had spent about 2 million dollars to buy back approximately 2.8 million ADSs, leaving a nominal capacity of about 28 million dollars. At 2:55 p.m. EDT on Aug. 4, Canaan's market value was estimated at 144.7 million dollars. Combining the company's digital asset estimate and cash balance, the gross total reaches 173.5 million dollars, approximately 28.8 million dollars, or 19.9%, above its market cap. Canaan has authorized potential treasury asset sales for buybacks but disclosed no new sales or repurchases as of Aug. 4. Canaan's June update listed 1,915 BTC and 3,952 ETH on its balance sheet as of June 30, excluding customer deposits. As of March 31, Canaan had 43.5 million dollars in cash against 106.4 million dollars in current liabilities, down from 80.8 million dollars at year-end. The company reported a 22.9 million dollar gross loss and an 88.7 million dollar net loss in Q1, with second-quarter revenue guidance between 35 million dollars and 45 million dollars.