Canaan adopts policy to hold bitcoin as primary reserve asset

SINGAPORE - Crypto mining firm Canaan Inc. (NASDAQ:CAN), whose stock has declined over 70% in the past six months according to InvestingPro data, announced Wednesday it has implemented a Cryptocurrency Holding Policy designating bitcoin as its primary long-term reserve asset.

Under the new framework, bitcoin accumulated through the company’s mining operations and equipment sales will generally be retained long-term, unless needed for liquidity or risk management purposes.

The policy establishes guidelines for acquiring, holding, and selling cryptocurrencies in alignment with the company’s liquidity requirements and strategic objectives.

"The Policy is designed to anchor Canaan’s capital allocation approach firmly within its core competency—the global bitcoin ecosystem," said Nangeng Zhang, chairman and chief executive officer of Canaan.

The company reported holding 1,484 bitcoins as of June 30, 2025.

While bitcoin serves as the primary reserve asset, Canaan may also acquire other cryptocurrencies such as Ethereum or U.S. Genius Act-compliant stablecoins through normal business operations. These non-core holdings will typically be converted to fiat currency but may be maintained short to medium term when supporting specific operational needs or hedging strategies.

Canaan, established in 2013 and publicly listed on Nasdaq in 2019, specializes in ASIC high-performance computing chip design and bitcoin mining equipment production.

The information in this article is based on a company press release statement.

In other recent news, Canaan Inc. announced the complete conversion and sale of its Series A-1 Convertible Preferred Shares by an institutional investor, which initially provided $100 million in financing. The company has also secured a significant deal to supply 6,840 Avalon A15Pro bitcoin mining machines to Cipher Mining Inc. for delivery in the third quarter of 2025, marking a major step in supporting U.S.-based bitcoin mining operations. In June 2025, Canaan mined 88 bitcoins, facing production challenges due to severe weather and electricity restrictions in Texas and Ethiopia, respectively. Additionally, the company plans to exit its AI semiconductor business to focus on core bitcoin mining operations, aiming to enhance capital efficiency. This strategic shift involves discontinuing a business segment that generated $0.9 million in revenue in fiscal year 2024. Benchmark has reiterated its buy rating on Canaan stock with a $2 price target, based on a valuation model that considers the company’s revenue estimates and bitcoin holdings.

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