Canaan Starts $20 Million Buyback as Mining Rig Revenue Falls 96%

According to ChainCatcher, Bitcoin mining equipment maker Canaan has launched a $20 million share repurchase program under a 12-month, $100 million authorization approved by its board on Nov. 6. Management said it may accelerate buybacks as funding becomes available and adjust purchases based on operating and financing needs. Canaan shares were down about 75% this year through Wednesday’s close. CEO Nangeng Zhang said the company is selectively selling crypto holdings to fund repurchases while maintaining its long-term digital asset reserves. Third-quarter mining equipment revenue fell 96% year over year to $4.8 million, from $118.6 million, amid weaker demand and lower selling prices. Self-mining revenue was $9.5 million. Canaan reported an $8 million profit alongside a $42.9 million operating loss, with the profit mainly reflecting revaluation gains on crypto and financial derivatives. The company previously disclosed selling 3,952 ETH and 54.5 BTC for about $13.9 million, and repurchasing 13.6 million American depositary shares for $5.4 million in late August. As of Sept. 30, Canaan held 1,875.5 BTC: 1,258 pledged for loans, 100 in a term product, and 517.5 recorded as crypto assets, worth $43.7 million at quarter-end. Cash and restricted cash totaled $72.8 million, including $50 million in letters of credit supporting infrastructure commitments, leaving about $22.8 million unrestricted. Management said the share price does not fully reflect the business and its growth prospects.