Crypto mining hardware manufacturer Canaan Inc. has announced a share repurchase program valued at up to $30 million, reinforcing its confidence in long-term growth amid ongoing market challenges.
The initiative aims to stabilize shareholder value and strengthen investor trust during a turbulent period for the cryptocurrency sector.
This announcement follows recent trading activity, in which Canaan Inc. (ADR) closed at $0.63, down 9.38%. Pre-market trading pushed the stock up to $0.70, representing a 10.32% increase, according to Google Finance.
Authorized by Canaan’s board of directors, the six-month buyback allows the company to repurchase its American depositary shares (ADSs)—each representing 15 Class A ordinary shares—and/or the Class A ordinary shares themselves. The program officially begins on May 27, 2025, and will be funded through Canaan’s existing cash reserves, highlighting the company’s solid liquidity position.
Chairman and CEO Nangeng Zhang described the move as a strategic response to what he sees as a significant undervaluation of the company’s stock.
“We see this program as a way to protect shareholder value while reaffirming our commitment to disciplined execution and innovation,”
Zhang stated.
The decision also comes amid macroeconomic pressures, including newly imposed U.S. tariffs and ongoing volatility in the crypto markets. Despite these headwinds, Canaan is staying the course with its innovation-driven strategy and is positioning itself for a potential rebound in the Bitcoin mining ecosystem.
To execute the buyback, Canaan may conduct share repurchases through open market transactions, private deals, or block trades. These actions will comply with the Securities Exchange Act of 1934 and the company’s insider trading policy. The pace and scale of the repurchase will be adjusted in response to market conditions and internal financial priorities.
Meanwhile, Canaan is also advancing its product portfolio. At CES 2025 in Las Vegas, the company unveiled two new Bitcoin mining machines: the Avalon Mini 3 and the Avalon Nano 3S. These devices reflect Canaan’s broader strategy to democratize crypto mining.
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