Bitcoin mining hardware producer Canaan (CAN) is turning to its crypto reserves to repurchase its shares as income from mining equipment sales plunges.
The enterprise initiated a $20 million buyback initiative on Tuesday as part of a larger $100 million plan authorized by its board on November 6. Leadership noted it plans to execute repurchases more aggressively as capital becomes accessible.
Canaan equity values have dropped approximately 75% throughout the year leading up to Wednesday’s market close, according to market figures.
Its hardware division produced a mere $4.8 million in third-quarter revenue, marking a 96% decline compared to $118.6 million during the same period last year. Canaan pointed to decreased demand and reduced sales prices as the primary drivers. Meanwhile, its proprietary mining activities generated $9.5 million, nearly doubling its hardware sales.
Chief Executive Officer Nangeng Zhang stated that Canaan is preserving a long-term digital asset reserve while “selectively monetizing cryptocurrency holdings to fund share repurchases.”
Previous reports illustrate this strategy in action.
In an October report, Canaan revealed it liquidated 3,952 ETH and 54.5 BTC for roughly $13.9 million. It allocated $5.4 million toward buying back 13.6 million American depositary shares—the financial instruments representing its equity on the Nasdaq—back in late August.
This fresh initiative arrives while a significant portion of its remaining treasury remains locked up.
Canaan possessed 1,875.5 BTC as of September 30, which included 1,258 coins locked as collateral for credit facilities and 100 deposited into a fixed-term vehicle. The remaining 517.5 BTC was listed outright as digital asset holdings, valued at $43.7 million at the close of the quarter.
Out of its $72.8 million total in cash and restricted cash, $50 million served as collateral for a letter of credit backing infrastructure obligations. This left approximately $22.8 million unencumbered by restricted balances.
The firm posted an $8 million quarterly net income despite sustaining a $42.9 million operating loss. Positive revaluation adjustments on digital currencies and financial derivatives drove the net income, boosted by a higher bitcoin market price at the quarter’s end.
Executives argue that the current stock price severely discounts the enterprise and its expansion potential. The share repurchase approval remains active for 12 months, allowing the corporation to modify acquisition volumes in response to business and financing requirements.
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Originally published at https://www.coindesk.com/markets/2026/11/12/canaan-may-sell-more-bitcoin-for-stock-buybacks-as-mining-rig-revenue-falls-96.
