Canaan Inc. Adopts Strategic Bitcoin Holding Policy with 1,484 BTC Reserve

Canaan Inc. (NASDAQ: CAN), a leading innovator in crypto mining, has announced the adoption of a new Cryptocurrency Holding Policy that designates Bitcoin as its primary long-term reserve asset. The company will retain Bitcoin accumulated through its mining operations and equipment sales for the long term, except when liquidity or risk management needs arise. The policy permits temporary holdings of other cryptocurrencies such as Ethereum and compliant stablecoins, which will generally be converted to fiat currency. As of June 30, 2025, Canaan's Bitcoin reserves stood at 1,484 BTC. This strategic move aims to strengthen Canaan's balance sheet, align the company with the broader digital asset economy, and provide strategic optionality for future growth initiatives.

Strategic Implications

Canaan’s formal Cryptocurrency Holding Policy marks a significant shift in asset management, committing to a "HODL" strategy by accumulating and retaining Bitcoin rather than immediately converting it to fiat currency. The current Bitcoin holdings, valued at approximately $74 million at recent market prices, underscore a substantial financial commitment. Key strategic benefits include:

• Transforming Canaan from solely a mining hardware provider into a Bitcoin accumulator, appealing to investors seeking indirect Bitcoin exposure.
• Creating a treasury reserve that may appreciate if Bitcoin prices rise, adding a growth vector beyond equipment sales.
• Aligning the company’s financial interests with the broader Bitcoin ecosystem it serves.
• Providing strategic optionality for future crypto space initiatives.
The policy maintains flexibility by allowing short- to medium-term holdings of other cryptocurrencies to support operational needs and hedging strategies.

Financial and Operational Considerations

While the Bitcoin reserve strategy offers growth potential, it also introduces increased exposure to Bitcoin price volatility, which will impact Canaan’s balance sheet and quarterly results. Additionally, accounting standards require cryptocurrencies to be treated as intangible assets subject to impairment testing, posing potential accounting complexities. The Bitcoin reserve enhances financial optionality, enabling capital raising through collateralized loans or selective liquidation. However, capital allocated to Bitcoin is less liquid for other strategic uses such as R&D or acquisitions. This balanced approach transforms Canaan’s profile from a pure hardware manufacturer to a hybrid technology and Bitcoin investment entity, potentially attracting a broader investor base.

Executive Commentary

Nangeng Zhang, Chairman and CEO of Canaan, stated:

"The Policy is designed to anchor Canaan's capital allocation approach firmly within its core competency—the global bitcoin ecosystem—while providing measured flexibility to address operational requirements that may arise from the Company's self-mining operations, bitcoin mining machine sales, and related crypto-infrastructure initiatives. We believe in the strategic importance of maintaining bitcoin reserves, which reached 1,484 bitcoins as of June 30, 2025."

About Canaan Inc.

Founded in 2013, Canaan Inc. is a technology company specializing in ASIC high-performance computing chip design, production of computing equipment, and software services. The company pioneered the world's first ASIC-based Bitcoin mining machines under the Avalon brand. Canaan went public on the Nasdaq Global Market in 2019. Learn more at https://www.canaan.io/.

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FAQ

Q: How many bitcoins does Canaan hold as of June 2025? A: Canaan holds 1,484 bitcoins as of June 30, 2025. Q: What is Canaan's Cryptocurrency Holding Policy? A: It establishes Bitcoin as the primary long-term reserve asset, retaining Bitcoin from mining and equipment sales unless liquidity or risk management requires otherwise. Q: How does Canaan handle other cryptocurrencies? A: Other cryptocurrencies like Ethereum and compliant stablecoins are generally converted to fiat but may be held short- to medium-term for operational or hedging purposes. Q: What is the purpose of this strategy? A: To strengthen the balance sheet, align with the digital asset economy, and provide strategic flexibility for future growth. Q: Who announced the policy? A: Nangeng Zhang, Chairman and CEO of Canaan.

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Source: Canaan Inc. Announces Adoption of Cryptocurrency Holding Policy and Strategic Long Position in Bitcoin

Crypto Market AI's Take

Canaan Inc.'s strategic decision to hold Bitcoin as a primary reserve asset reflects a growing trend among companies in the digital asset space to not only participate in mining but also to directly benefit from the appreciation of the underlying asset. This move positions Canaan as a hybrid entity, combining its core competency in mining hardware with a direct investment in the Bitcoin ecosystem. This strategy can appeal to investors seeking a more integrated exposure to Bitcoin's growth, potentially differentiating Canaan from competitors solely focused on hardware sales. For a deeper understanding of how companies are navigating the crypto market and leveraging AI for strategic insights, exploring our coverage on AI-driven crypto trading tools and market analysis can provide valuable context.

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