Canaan Turns to Crypto Holdings to Finance $30M Share Repurchase Program
Canaan, a mining hardware manufacturer, announced this Tuesday that its board has been authorized to monetize a portion of its digital asset treasury to fund its share repurchase program of up to $30 million. As confirmed by its Chairman and CEO, Nangeng Zhang, the company’s mining operations continue to consistently generate Bitcoin, providing them with a flexible source of capital to execute the buyback with discipline.
The strategy seeks to address a market undervaluation, given that Canaan’s market capitalization trades below the combined value of its digital assets and available liquidity, valued at approximately $130 million as of early August. Following the announcement, the company’s shares experienced a rise of nearly 9% on Nasdaq, demonstrating a favorable reception from investors.
The repurchase program will remain in effect until December 2026, and the execution pace will depend on share price performance and the firm’s financial conditions.
Source: https://lix.li/hWNqf
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