Nasdaq-listed Bitcoin mining rig manufacturer Canaan (CAN) has taken a drastic step by officially authorizing its management to start selling a portion of the company’s Bitcoin and Ethereum reserves. This crypto asset liquidation plan is specifically allocated to fund the continuation of its ongoing share buyback program.
As of the end of last June, the company’s reserve wallets recorded holdings of 1,915 BTC and 3,952 ETH. Based on crypto market prices on August 3, this entire stockpile of digital assets is estimated to be worth up to $130 million.
The decision to unload these crypto reserves stems from heavy pressure on Wall Street. Canaan’s stock price fell sharply and was traded at just $0.19 as of August 6. This figure is far below Nasdaq’s minimum bid price requirement of $1 per share. This situation prompted action from the exchange, which then granted Canaan a 180-day grace period extension, specifically until January 11, 2027, to regain compliance by raising its stock price.
Discrepancy Between Market Value and Crypto Reserves
Canaan CEO Nangeng Zhang is not staying idle as the company’s stock price plummets. He firmly stated that Canaan’s current market value does not reflect the value of its digital asset reserves or the actual fundamental strength of their core business.
To curb negative sentiment, Canaan’s buyback program is set to be maximized. The scheme itself has already received approval with a budget quota of up to $30 million to buy back Class A American Depositary Shares (ADS), valid for a 12-month period running since December 12, 2025. As of the May 19 deadline, data shows that Canaan has only executed a small fraction of that quota, spending about $2 million to redeem 2.8 million ADS. With $28 million remaining in the budget space, fresh funds from the sale of BTC and ETH appear to be the primary lubricant.
Although Canaan holds a total of 1,915 BTC, most of them are not liquid or ready for sale. It is recorded that 905 BTC have already been pledged to other parties as collateral to cover term loans. In addition, an extra 100 BTC was moved into fixed-term investment products, meaning they cannot be immediately withdrawn at any time by management.
Hashrate Performance Amid Texas Incident
Canaan’s business is not just about revolving capital on the stock market, but also keeping its mining rigs operating efficiently in the field. During May, the efficiency rate of Canaan’s mining fleet in its self-operated (non-JV) North American areas stood at 17.9 J/TH, representing an 11% efficiency improvement compared to the previous year.
But heading into June, the company’s computing performance slowed down. The operational hashrate specifically for non-JV areas fell to 3.36 EH/s. A slightly better situation occurred in Canaan’s joint venture (JV) operations, which recorded a hashrate recovery back to the 4.09 EH/s level. This recovery occurred right after all their JV mining activities had temporarily ground to a halt due to disruptions from the forest fires in the Texas region.
With a deadline leading up to early 2027, management must now balance the pace of mining operations, digital asset reserves, and a stock price that needs to rise more than five-fold. Today’s Bitcoin sales will determine whether their crypto treasury is sufficient to save Canaan’s status on the public stock exchange.
Reported from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
