Canaan Inc. Renews Its US$30 Million Share Buyback Program
Rhea-AI Summary
Canaan (NASDAQ: CAN) announced a renewed US$30 million share repurchase program to buy ADSs or Class A ordinary shares over the next 12 months starting December 12, 2025. Each ADS represents 15 Class A ordinary shares. The program follows an expired six-month plan that repurchased 6,586,413 ADSs for ~US$4.9 million. Repurchases may occur via open-market transactions, negotiated trades, or block trades and will be funded from the company's existing cash balance. The board cited improved Q3 2025 operations, stronger customer engagement, and product innovation as reasons for the renewed program.
Positive
- Board authorized US$30 million ADS repurchase (12 months)
- Each ADS represents 15 Class A ordinary shares
- Previous program repurchased 6,586,413 ADSs for ~US$4.9 million
- Repurchases may use open market, negotiated, or block trades
Negative
- Repurchases will be funded from existing cash balance (opportunity cost)
- Timing and number of ADS repurchases remain uncertain and market-dependent
News Market Reaction 6 Alerts
On the day this news was published, CAN declined 1.76%, reflecting a mild negative market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $9M from the company's valuation, bringing the market cap to $479M at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Peers in Computer Hardware showed mixed, mostly modest moves (e.g., UMAC +3.33%, DDD -1.55%), with no broad, synchronized sector momentum evident for CAN.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 10 | Mining update | Positive | -2.3% | November 2025 mining update with record BTC/ETH treasury and expanded hashrate. |
| Nov 19 | Hosting agreement | Positive | -6.5% | Strategic hosting deal for 20 MW (~1 EH/s) miners at Project Dorothy in Texas. |
| Nov 18 | Earnings update | Positive | +20.8% | Q3 2025 results with strong revenue growth, record mining revenue, and positive EBITDA. |
| Nov 17 | Industry report | Neutral | -4.4% | Industry white paper highlighting Canaan’s ranking in global mining hardware market. |
| Nov 12 | Mining update | Positive | -2.7% | October mining update with 92 BTC mined, major orders, and Nasdaq compliance regained. |
Recent operational and crypto-focused updates with generally positive fundamentals often saw negative price reactions, while the strong Q3 earnings update aligned with a sizable gain.
Over the last months, Canaan reported detailed bitcoin production updates, expanding hashrate, and growing crypto treasuries, alongside record Q3 2025 revenue of US$150.5M and improved profitability metrics. Strategic initiatives included a hosting deal targeting ~1 EH/s in Texas and technology advances like the Avalon A16. Despite several crypto-operations updates being followed by negative moves, the Q3 earnings release on Nov 18, 2025 saw a 20.75% gain. Today’s renewed US$30M buyback links back to this period of scaling operations and capital actions.
Market Pulse Summary
This announcement renews a share repurchase program of up to US$30 million over 12 months, following a prior US$30 million authorization under which 6,586,413 ADSs were bought for about US$4.9 million. Management links the decision to a strong balance sheet and improved Q3 2025 operations. Historically, similar buyback news on May 27, 2025 coincided with a 9.11% move, while other fundamentally positive updates sometimes saw muted or negative reactions, underscoring ongoing sector and issuance risks to monitor.
Key Terms
ads financial
block trades financial
insider trading policy regulatory
AI-generated analysis. Not financial advice.
Renewal demonstrates confidence in the Company's long-term value and strategic progress
The Company's previously announced share repurchase program of up to
Nangeng Zhang, chairman and chief executive officer of Canaan, commented, "We think the current market valuation does not capture the progress we have made in strengthening our business. Compared with our publicly listed Bitcoin mining peers, Canaan's valuation remains at the more conservative end relative to its operating footprint. Against a backdrop of continued macroeconomic and industry volatility, we delivered encouraging improvements in our third-quarter performance, expanded global customer engagement, and enhanced product innovation and mining operations. This buyback program reflects our disciplined approach to capital allocation and our unwavering commitment to creating enduring value for our shareholders."
Under the share repurchase program, the Company may repurchase the ADSs representing its Class A ordinary shares through open market transactions at prevailing market prices, privately negotiated transactions, block trades, or any combination thereof. Canaan will execute the repurchase transactions in compliance with the Securities Exchange Act of 1934, as amended, and its insider trading policy. The number of ADSs repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, price, trading volume, and general market conditions, along with Canaan's working capital requirements and general business conditions. The Company's Board or its management will review the share repurchase program periodically and may authorize an adjustment of its terms and size as appropriate. The Company plans to fund the repurchases with its existing cash balance.
About Canaan Inc.
Established in 2013, Canaan Inc. (NASDAQ: CAN), is a technology company focusing on ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services. Canaan has extensive experience in chip design and streamlined production in the ASIC field. In 2013, Canaan's founding team shipped to its customers the world's first batch of mining machines incorporating ASIC technology under the brand name Avalon and, today, the Company's machines have the second largest share of the global bitcoin mining market. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market. To learn more about Canaan, please visit https://www.canaan.io/.
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as Canaan Inc.'s strategic and operational plans, contain forward-looking statements. Canaan Inc. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC") on Forms 20-F and 6-K, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Canaan Inc.'s beliefs and expectations, such as expectations with regard to revenue or mining hash rate deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's goals and strategies; the Company's future business development, the ability of the Company to execute against its goals, financial condition and results of operations; the expected growth of the bitcoin industry and the price of bitcoin; the Company's expectations regarding demand for and market acceptance of its products, especially its bitcoin mining machines; the Company's expectations regarding maintaining and strengthening its relationships with production partners and customers; the Company's investment plans and strategies, fluctuations in the Company's quarterly operating results; competition in its industry; changing macroeconomic and geopolitical conditions, including evolving international trade policies and the implementation of increased tariffs, import restrictions, and retaliatory trade actions; and relevant government policies and regulations relating to the Company and cryptocurrency. Further information regarding these and other risks is included in the Company's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Canaan Inc. does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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Investor Relations Contact
Canaan Inc.
Xi Zhang
Email: IR@canaan-creative.com
Christensen Advisory
Christian Arnell
Email: canaan@christensencomms.com
Public Relations Contact
BlocksBridge Consulting
Jesse Colzani
Email: canaan@blocksbridge.com
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SOURCE Canaan Inc.
FAQ
What did Canaan (CAN) authorize on December 12, 2025?
How many Class A shares does one Canaan ADS represent?
How much did Canaan repurchase under the previous buyback program?
How will Canaan execute the CAN share repurchases?
What will fund Canaan's US$30 million buyback (CAN)?
Will the CAN repurchase program immediately reduce outstanding shares?
