Canaan (CAN) Sold Crypto to Buy Back Stock. Can It Offset Weak Mining-Equipment Demand?

Canaan Inc. (NASDAQ:CAN) shared data for its bitcoin mining and production during August 2026. The company mined 44 BTC during the month, and maintained a non-JV installed hashrate of 10.05 EH/s.

In Falling Bitcoin Prices Drag Down Products and Mining Revenue for Canaan (CAN), we recently looked at whether weakness in Canaan's mining and equipment businesses leaves enough of an investment case for the stock.

Canaan's joint venture hashrate stood at 4.92 EH/s by the end of the month as it continued to expand. The company also made progress on its compute heat recovery greenhouse project in Canada, with equipment installation currently in progress prior to the winter heating season.

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Managing Digital Asset Treasury

A major initiative involved conversion of a chunk of Canaan's digital asset treasury into shareholder value. The company monetized part of its digital asset treasury during what management described as relatively favorable market conditions. In late August, the entire 3,952 ETH position was liquidated at a rate close to $2,400 per Ethereum. In addition, 54 bitcoins were also sold for roughly $79,000 per BTC. Combined cash proceeds from these sales amounted to approximately $13.9 million.

Canaan used approximately $5.4 million of the proceeds to buy back 13.6 million American Depositary Shares (ADSs), which management said reflected confidence in the company's strategy. It translates into 16.4 million ADSs repurchased since the start of the year. Despite the above-mentioned bitcoin sales, Canaan still held a substantial treasury of 1,868 BTC by the end of August, which signals its commitment to a strategic digital asset treasury.

Bitcoin Volatility Exposure

Risks include bitcoin's price volatility, which could reduce future mining revenue and treasury value despite the current 1,868 BTC holding. Execution risk remains for the Canadian greenhouse project, as delays in installation before winter could affect timelines and returns. Continued ADS repurchases reduce cash reserves, potentially limiting flexibility. Additionally, selling ETH and BTC at set prices exposes Canaan to opportunity cost if market conditions shift favorably afterward, and rising energy costs could still pressure the company's competitive mining margins.

The company's second quarter print also highlighted weakness in its core mining-equipment business. Quarterly revenue from products dropped significantly, settling at $13.6 million compared to $71.9 million for the corresponding period last year. The lackluster performance was attributed to weaker mining-equipment demand amid deflated bitcoin prices, which resulted in lower average selling prices. Such lower bitcoin prices also resulted in Canaan's Mining revenue going down from $28.1 million in Q2 FY25 to $17.7 million for the reported quarter.