Canaan launches $20 million buyback as equipment sales plunge

The buyback is the first step under a $100 million authorization approved by Canaan’s board on November 6. The authorization runs for 12 months, but the company has not committed to spending the full amount. Purchases may include American depositary shares or Class A ordinary shares, through open-market transactions, private deals or block trades. Management said timing and spending will depend on market conditions, operating needs and existing commitments.

Chairman and CEO Nangeng Zhang said Canaan believes its shares materially undervalue the business and its long-term growth potential. He said the company intends to pursue repurchases more actively as funds become available while retaining liquidity for operations and infrastructure projects. The shares had lost about 75% of their value through November 11, according to market data cited in reports on the announcement.

Total third-quarter revenue fell to $14.5 million from $150.5 million a year earlier. Revenue from Canaan’s own Bitcoin mining operations was $9.5 million, down from $30.6 million. The company said weaker demand for mining machines and lower average selling prices drove the equipment decline; it sold computing equipment representing about 1 million terahashes per second.

Canaan reported an $8 million net profit, compared with a $27.7 million loss in the third quarter of 2025, despite a $42.9 million operating loss. Gains of about $52 million from changes in the value of cryptocurrency holdings and financial derivatives contributed to the result. CFO James Jin Cheng said those gains were non-cash and separate from underlying operating performance.

The company has previously used crypto-sale proceeds for buybacks. It disclosed selling 3,952 ETH and 54.5 BTC for about $13.9 million, of which $5.4 million went toward repurchasing 13.6 million American depositary shares in late August. Total repurchases in 2026 reached about 16.4 million shares by October 15.

Canaan held 1,875.5 BTC on September 30, but 1,258 BTC were pledged as loan collateral and 100 BTC were in a fixed-term product. The remaining 517.5 BTC were listed as cryptocurrency assets worth $43.7 million. The company reported $72.8 million in cash and restricted cash, including $50 million supporting a letter of credit for infrastructure commitments.