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Canaan to fund ADS buybacks by selling part of crypto holdings

Canaan to fund ADS buybacks by selling part of crypto holdings

The board has now authorized management to use crypto sale proceeds for the existing $30 million repurchase plan, a move investors welcomed as the miner balances capital returns against liquidity needs.

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Fact Check
Canaan's own PR Newswire press release directly confirms the claim: the company will sell part of its digital asset treasury to fund ADS buybacks under an existing board-approved repurchase program, with future sales subject to conditions including share price and cash needs. Stock Titan and CoinNess independently corroborate the same facts, including the ~US$130M crypto holdings and December 2025 program approval date. Every element of the claim is supported by the primary source.
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Summary

Canaan said on Aug. 4 that management can use proceeds from sales of the company’s cryptocurrency holdings to fund repurchases of American depositary shares, or ADS, under a buyback program approved in December 2025. The authorization does not announce a new sale or repurchase, but it gives the Nasdaq-listed Bitcoin miner and ASIC maker a direct way to tap a digital asset treasury valued at about $130 million as of Aug. 3. Canaan reported holding 1,915 BTC and 3,952 ETH as of June 30, and CEO Nangeng Zhang said using part of that treasury for buybacks reflects confidence in the company’s long-term prospects while mining operations continue to generate Bitcoin as a source of flexible capital. Shares rose roughly 5.9% to nearly 9% after the announcement. The company still faces a tradeoff between supporting per-share value and preserving liquidity after first-quarter losses and with current liabilities exceeding its March cash balance.

Terms & Concepts
  • American depositary shares (ADS): U.S.-traded certificates that represent shares of a non-U.S. company.
  • ASIC: Specialized chip hardware built for a single task, such as Bitcoin mining.
  • Digital asset treasury: Cryptocurrency holdings kept on a company’s balance sheet and available for strategic use.