Canaan authorized to sell part of digital asset treasury for $30M buyback
Canaan Inc., one of the largest Bitcoin ASIC chip manufacturers in the world, just told shareholders it’s willing to sell some of its crypto stash to buy back its own stock. The company’s board has given management the green light to liquidate a portion of its digital asset treasury to fund repurchases under a $30 million buyback program.
The company’s digital asset holdings were valued at approximately $130 million as of August 3, 2026. A $30 million buyback against a $130 million treasury is less a fire sale and more a strategic trim.
What Canaan is actually doing
The buyback program itself isn’t new. Canaan’s board originally approved it back on December 12, 2025, with authorization running through December 12, 2026. What changed on August 4 is that management now has explicit permission to fund those repurchases by selling crypto from the company’s balance sheet.
As of the end of June 2026, Canaan held a record 1,915 BTC and 3,952 ETH.
CEO Nangeng Zhang framed the move as a reflection of disciplined capital allocation, noting that it expresses confidence in the company’s long-term prospects. He pointed out that Canaan’s mining operations continue to generate Bitcoin, which provides what he called a source of “flexible capital.”
Using a portion of the digital asset treasury for share repurchase reflects confidence in the company’s long-term prospects.
Wall Street liked the news. Canaan’s stock jumped between approximately 5.9% and nearly 9% following the announcement.
What investors should watch
The first question is execution timing. Canaan has until December 12, 2026, to deploy the full $30 million. Whether they sell Bitcoin, Ethereum, or some combination will matter. The company holds both, and the decision to sell one over the other could signal management’s relative conviction in each asset.
The buybacks are subject to board oversight and prevailing market conditions. If Bitcoin prices crater, selling crypto to fund buybacks becomes less attractive. If Bitcoin prices surge, the opportunity cost of selling goes up.
There’s also a tax and accounting angle worth monitoring. Selling digital assets triggers taxable events, and the accounting treatment of crypto on corporate balance sheets has been evolving under US GAAP rules.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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