Canaan Authorizes Liquidation of Digital Assets for ADS Share Repurchases

Canaan Inc. permits management to sell digital asset reserves, valued at $130M as of Aug 3, to fund ADS buybacks, citing undervaluation relative to holdings.

Woofun AI reports that Bitcoin mining machine manufacturer Canaan Inc. has authorized its management team to liquidate a portion of its digital asset reserves. These proceeds will be utilized for the repurchase of American Depositary Shares (ADS) under the company's existing share buyback program. The firm noted that its current market capitalization is lower than the combined value of its digital assets and cash as disclosed on March 31. Based on market prices from August 3, the value of its digital asset holdings stands at approximately $130 million. Future repurchase activities will be determined by stock price performance, prevailing market conditions, and working capital requirements. The specific volume of assets to be liquidated and the total scale of the buyback remain undisclosed.