Shares of the cryptocurrency mining hardware manufacturer Canaan experienced notable gains on Wednesday following the disclosure of a new capital return program. The company’s board has authorized a plan to repurchase up to $30 million worth of its own shares over the coming year, utilizing existing cash reserves.
Financial Position and Rationale
Company leadership cited Canaan’s robust financial condition and its operational performance in the third quarter of 2025 as the foundation for this decision. Management expressed the view that the current market valuation fails to adequately reflect the underlying business progress and intrinsic value. The repurchases may be executed through various methods, including open market transactions.
This new twelve-month initiative, which commenced on December 12, replaces a previous six-month program that has now expired. Under that prior authorization, Canaan bought back approximately 6.59 million of its American Depositary Shares (ADS) for a total consideration of about $4.9 million.
Should investors sell immediately? Or is it worth buying Canaan?
Strategic Expansion and Market Context
The authorization arrives during a period of active strategic development for the miner. In November, Canaan reported a steady Bitcoin production output of 89 BTC and a record-high balance in its cryptocurrency reserve. The company’s roadmap includes bringing approximately 1 EH/s of mining capacity online by the end of 2025, with additional expansion planned for the first quarter of 2026.
Market analysts currently maintain an average price target range between $2.96 and $3.56 per share. This consensus suggests significant potential upside from recent trading levels. The ongoing execution of operational plans and the successful scaling of mining infrastructure are expected to remain central drivers for the company’s future valuation.
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