Bitcoin mining equipment maker Canaan has launched a $20 million share buyback program after its mining-machine revenue fell 96% in the third quarter, with the company planning to use available cash and potentially sell more cryptocurrency to fund purchases. Summary Canaan announced a $20 million initial share buyback under its larger $100 million authorization program. Bitcoin mining equipment revenue fell 96% year over year to $4.8 million during the quarter. Canaan previously sold Bitcoin and Ethereum worth $13.9 million to help finance stock repurchases. The company held 1,875.5 BTC in September, with most pledged or committed to financial products. Canaan reported $8 million in quarterly profit despite recording a $42.9 million operating loss overall. In its November 10 announcement, the Nasdaq-listed company said the program forms part of a $100 million repurchase authorization approved by its board on November 6. The authorization remains valid for 12 months, although Canaan has not committed to spending the entire amount. $CAN has launched an initial share repurchase program of up to US$20 million, under a broader US$100 million repurchase authorization approved by our board for a 12-month period beginning November 6, 2026.Details: https://t.co/9BcJ0NNl8i— Canaan Inc. (@canaanio) November 10, 2026 The decision follows a difficult period for the company’s mining hardware business, which generated just $4.8 million in quarterly sales compared with $118.6 million a year ago. Canaan launches $20M buyback after stock declines Canaan said it may repurchase its American depositary shares or Class A ordinary shares through open-market purchases, private transactions or block trades. The company plans to fund the program using cash and other available liquidity. However, management will determine the timing and amount of purchases based on market conditions, operating requirements and existing financial commitments. Its shares have lost approximately 75% of their value this year through November 11, according to market data cited in reports covering the announcement. Chairman and CEO Nangeng Zhang said the company’s share price does not adequately reflect its business and future prospects. “This new share repurchase program reflects our belief that our shares are trading at levels that materially undervalue the strength of our business model and long-term growth potential,” Zhang said. He added that the company intends to pursue purchases more actively as additional funds become available, while preserving enough liquidity for operations and infrastructure projects. The latest authorization follows Canaan’s earlier decision to sell part of its cryptocurrency holdings to finance stock purchases. As crypto.news previously reported, the company authorized management in August to use digital assets to support repurchases under an existing program. Bitcoin mining machine sales drop 96% in third quarter Canaan’s third-quarter results showed that revenue from mining equipment declined to $4.8 million, down from $118.6 million in the corresponding period last year. The company attributed the decline to weaker demand for mining machines and lower average selling prices. It sold computing equipment representing approximately 1 million terahashes per second during the quarter. Revenue from Canaan’s own Bitcoin mining operations reached $9.5 million, almost twice the amount generated from equipment sales. However, mining revenue fell from $30.6 million a year earlier, while total quarterly revenue dropped to $14.5 million from $150.5 million. Despite the sales decline, Canaan reported an $8 million net profit, reversing a $27.7 million loss in the third quarter of 2025. The profit came despite an operating loss of $42.9 million. Gains from changes in the value of cryptocurrency holdings and financial derivatives contributed approximately $52 million to the quarterly result. Chief Financial Officer James Jin Cheng acknowledged that the gains were non-cash and separate from the company’s underlying operating performance. Canaan sells Bitcoin and Ethereum to fund share purchases Canaan has already used proceeds from cryptocurrency sales to repurchase shares. Its September mining update disclosed that the company sold 3,952 ETH and 54.5 BTC, raising approximately $13.9 million. Of that amount, Canaan spent $5.4 million to repurchase 13.6 million American depositary shares in late August. The transactions brought its total repurchases during 2026 to approximately 16.4 million shares by October 15. Meanwhile, Canaan held 1,875.5 BTC as of September 30, although most of those holdings were tied to financing arrangements. The company had pledged 1,258 BTC as collateral for secured loans and placed another 100 BTC into a fixed-term product. Its remaining 517.5 BTC appeared directly as cryptocurrency assets on its balance sheet, valued at $43.7 million. Canaan reported $72.8 million in cash and restricted cash at quarter-end. Of that amount, $50 million supported a letter of credit for infrastructure commitments, leaving approximately $22.8 million outside the restricted balance. Canaan advances Texas energy projects despite mining slowdown The company is pursuing energy infrastructure projects alongside its Bitcoin mining and hardware businesses. In Texas, its proposed 1-gigawatt Duval County project recently received conditional classification under ERCOT’s Batch Zero grid connection process. The project still requires further studies and approvals. Canaan is developing another proposed 1-gigawatt power project in Zapata County, which remains in its early planning stages. Its September mining operations produced 44 BTC, while the company reported 133 BTC mined during the third quarter. Canaan has also announced plans to change its American depositary share ratio from one ADS representing 15 ordinary shares to one ADS representing 375 ordinary shares. The proposed adjustment is equivalent to a 1-for-25 reverse ADS split, which the company expects to take effect around December 4, 2026.
