Canaan Allowed Bitcoin Sales After Revenue Plummeted by 90%

Mining equipment manufacturer Canaan has allowed for further sales of part of its cryptocurrency reserves to finance the buyback of its securities. The statement came after the publication of the results for the third quarter of 2026: the company's total revenue decreased by 90% year-on-year, to $14.5 million.

Sales of mining equipment fell by 96%

Revenue from the sale of ASIC miners, specialized devices for cryptocurrency mining, decreased from $118.6 million to $4.8 million. The company explained the decline by a reduction in demand, sales of computing power, and average equipment prices. Its own mining brought in $9.5 million, almost twice the sales of devices.

With an operating loss of $42.9 million, Canaan achieved a net profit of $8 million. The result was aided by a positive revaluation of cryptocurrencies by $20.1 million and financial derivatives by $31.9 million. The company emphasized that these non-cash incomes do not reflect the efficiency of its core activities.

Canaan considers selling part of its bitcoins

On November 10, the company announced an initial buyback program of up to $20 million within a total limit of $100 million approved by the board of directors. Earlier, in August, Canaan sold 54 BTC and 3,952 ETH for approximately $13.9 million. Of this amount, $5.4 million was directed to buy back 13.6 million American Depositary Shares (ADS) representing the company's shares.

As of September 30, Canaan's reserve was 1,875.5 BTC. Of these, 1,258 BTC served as loan collateral, 100 BTC were in a term financial product, and 517.5 BTC were accounted for directly as crypto assets valued at $43.7 million. The company did not announce specific amounts and timing of new sales.

The company plans to consolidate depositary shares

Around December 4, Canaan intends to consolidate ADS in a 25 to 1 ratio to restore compliance with Nasdaq's minimum price requirements. The number of underlying common shares will not change. This measure does not imply an increase in the market value of the business itself.