Canaan Inc. (NASDAQ: CAN) released its unaudited bitcoin mining update for the month ending July 31, 2026, reporting production of 46 BTC during the period. The company's cryptocurrency treasury stood at 1,917 BTC and 3,952 ETH at month-end, while its global operating computing power across 12 active mining projects reached 14.24 EH/s.

July 2026 mining performance highlights

The company's North American non-JV fleet maintained an average miner efficiency of 17.9 J/TH during the month. Joint venture operations at the Alborz, Bear, and Chief Mountain facilities in West Texas — in which Canaan holds a 49% stake — continued to stabilise following wildfire-related disruption at Alborz, with operating hashrate increasing to 4.20 EH/s and installed hashrate reaching 4.85 EH/s at month-end. The average all-in power cost across the portfolio was US$0.043/kWh, and the month-end average revenue split stood at 60.6% (excluding JV ownership).

The following table summarises the key operational metrics for July 2026:

Mining infrastructure breakdown

The infrastructure update as of July 31, 2026 details miner efficiency and installed power capacity across regions. The table below presents the month-end average miner efficiency and installed power capacity by geography:

Global mining project distribution

As of July 31, 2026, Canaan operated 12 active mining projects globally. The table below presents computing power by region:

Canaan has paused its mining operations in Ethiopia, though the associated hashrate remains part of the company's installed hashrate figures.

Share repurchase authorisation using digital asset treasury

On August 4, 2026, Canaan announced that it authorised management to monetise a portion of its digital asset treasury to fund repurchases of its American Depositary Shares (ADSs). The repurchases will be executed under the existing share repurchase program authorised by the board of directors on December 12, 2025. The company noted that, based on its current market capitalisation, it is trading below the combined value of its digital asset holdings and cash position as reported on March 31, 2026.

Nasdaq Capital Market transfer and compliance period

On July 1, 2026, Canaan completed the transfer of its ADS listing from the Nasdaq Global Market to the Nasdaq Capital Market. On July 15, 2026, the company received written notification from The Nasdaq Stock Market LLC granting an additional 180-day compliance period, or until January 11, 2027, to regain compliance with Nasdaq's minimum bid price requirement under Listing Rule 5550(a)(2). The company satisfies all other applicable continued listing requirements for the Nasdaq Capital Market except for the minimum bid price requirement. To regain compliance, the closing bid price of the company's ADSs must reach at least US$1.00 per ADS for a minimum of ten consecutive business days during this period. The notification has no immediate effect on the listing or trading of Canaan's ADSs, which continue to trade under the symbol "CAN."

Canaan Inc. (NASDAQ: CAN) has authorized its management team to monetize a portion of its digital asset treasury to fund the repurchase of its American depositary shares (ADSs). Announced on August 4, 2026, from Singapore, this strategic move operates under the existing share repurchase program approved by the Board of Directors on December 12, 2025. The decision aims to capitalize on the company’s current valuation dynamics while maintaining a disciplined capital allocation strategy that balances active treasury management with long-term commitments to holding strategic digital assets.

The authorization allows Canaan to execute repurchases based on prevailing market conditions, including the trading price of its ADSs, working capital requirements, and other relevant factors. Any further repurchases funded by digital asset proceeds remain subject to Board oversight and the limits of the existing authorization. This approach reflects the company’s intent to optimize shareholder value by leveraging its treasury holdings when market conditions present favorable opportunities.

Valuation Context

Canaan’s decision to monetize digital assets is driven by its current market positioning relative to its balance sheet strength. As of March 31, 2026, the end of its most recently reported quarter, the company’s market capitalization was trading below the combined value of its digital asset holdings and its cash and cash equivalents. This discrepancy suggests that the market may be undervaluing the company’s tangible and digital resources compared to its equity price.

Nangeng Zhang, chairman and chief executive officer of Canaan, stated that the company’s operations continue to generate bitcoin, providing a flexible source of capital. He noted that at current trading levels, Canaan’s market value does not fully reflect the value of its digital asset holdings, cash position, and underlying business strength.

Treasury Holdings Overview

The company maintains a significant position in digital assets, managed in accordance with its established treasury and custody policy. According to its June 2026 monthly production and mining operation updates, Canaan held digital assets with an approximate market value of US$130 million based on prevailing market prices as of August 3, 2026. These holdings serve as a key component of the company’s financial strategy, providing liquidity options for corporate actions such as share buybacks.

Strategic Implications

The ability to fund buybacks through digital asset monetization offers Canaan flexibility in capital allocation without necessarily impacting its cash reserves for operational needs. By tapping into its digital treasury, the company can return value to shareholders while preserving liquidity for ongoing compute and energy infrastructure operations. This strategy aligns with broader trends among companies with significant crypto-treasury positions seeking to bridge the gap between asset value and market perception.

What the Numbers Show

The core insight from this announcement is the divergence between Canaan’s market capitalization and its net asset value inclusive of digital holdings. Trading below the sum of cash and digital assets implies a potential discount on the company’s equity, which the buyback program seeks to address. By reducing the share count using assets already on the balance sheet, Canaan aims to increase earnings per share and potentially narrow this valuation gap over time, assuming stable or appreciating values for both its remaining digital assets and business operations.