Chinese mining giant Canaan announces $10 million share buyback

Published at: Sept. 8, 2020

Canaan, China’s major cryptocurrency mining company, will soon launch a $10 million share repurchase program.

On Sept. 8, the Nasdaq-listed company officially announced that its board of directors has  authorized a share repurchase program to repurchase up to $10 million worth of its American depositary shares, or ADSs.

According to the announcement, Canaan will be repurchasing 15 Class A ordinary shares and/or Class A ordinary shares over the next 12 months starting Sept. 22.

Under the share repurchase program, the mining giant is authorized to repurchase its ADSs “from time to time” through open market transactions at prevailing market prices, privately negotiated transactions, block trades or “any combination thereof,” the firm’s executives said.

In the announcement, Canaan’s representatives said that repurchase transactions will be conducted in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934. The number of repurchased ADSs and the schedule of repurchases will depend on several factors like price, trading volume, general market conditions, as well as Canaan’s working capital requirements and general business conditions, the company’s reps noted.

Also known as a share buyback, a share repurchase is a decision by a company to buy back its own shares from the market. Companies usually repurchase shares to increase the value of the stock to improve their financial statements.

Headquartered in China, Canaan is the first ever cryptocurrency mining firm that was listed on a United States exchange. In November 2019, Canaan conducted an initial public offering on major stock exchange Nasdaq, raising $90 million by 10,000,000 shares for $9 each, which was reportedly over 75% less than expected originally.

Canaan’s stock suffered a major drop since listing on Nasdaq, with shares never going higher than $9. In March 2020, CAN stock collapsed to below $3 after investors filed a class action suit against the firm. The lawsuit stipulated that Canaan made misleading statements regarding its financial health.

After recovering up to $6 in May 2020, Canaan stock has seen a number of consecutive sell-offs, leading the stock’s price to as low as $1.9 on Sept. 4, according to data from Nasdaq.

CAN all-time price chart. Source: Nasdaq

Cointelegraph reached out to Canaan with additional queries regarding the share repurchase program. This article will be updated pending any new information from the company.

Canaan’s share repurchase plans come amid purported improvements in the company’s business. In late August, Canaan released its unaudited financial Q2 2020 results, reporting growth in gross profit both year on year and quarter on quarter. The company also significantly reduced its net loss from 263 million Chinese renminbi ($38 million) in Q2 2019 to 16.8 million renminbi ($2.4 million) in Q2 2020.

Tags
United States
Business
China
Nasdaq
Mining
Stocks
Canaan
Related Posts
Canaan Sued Over Alleged ‘Fake’ Deal, Stock Sees Historic Low
While the current climate seems uneasy for all cryptocurrency businesses, some of them have to deal with extra difficulties. Earlier this month, investors filed a class-action lawsuit against Canaan, a Nasdaq-listed cryptocurrency mining hardware producer. The case is largely based on a February report submitted by an analysis organization called Marcus Aurelius Value, which argued that the mining firm has made misleading statements regarding its financial health. The second-largest Bitcoin mining operation is in trouble Canaan is considered to be the second-largest Bitcoin (BTC) mining machine manufacturer in the world. The firm was established in 2013 by Nangeng Zhang, also …
United States / March 15, 2020
Crypto mining firm Argo Blockchain eyes secondary Nasdaq listing
Argo Blockchain, a publicly traded blockchain technology company focused on cryptocurrency mining, is looking at a potential secondary listing on the Nasdaq exchange. On Tuesday, the company announced that it is now exploring the possibility of a secondary listing on the Nasdaq as part of its operational and strategic update for June 2021. Argo Blockchain said that the firm has not yet reached a decision on the timing of the secondary listing, noting that “There is no guarantee that the listing will be finalized,” and, “Any proposed listing is subject to market and other conditions, and there can be no …
Bitcoin / July 6, 2021
Ebang Hits Nasdaq IPO Running With Ambitious Expansion Plan
On June 26, Chinese firm Ebang was listed on the Nasdaq Global Market under the ticker EBON, becoming the second Bitcoin (BTC) mining manufacturer to go public on a United States stock exchange. The company intends to secure up to $125 million in the offering and follow up with an ambitious enlargement — namely, it plans to open up a cryptocurrency exchange and mining farms. So, what does going public mean for the mining player, and will other crypto companies follow suit? From telecoms equipment to Bitcoin mining According to documents Ebang filed with the U.S. Securities and Exchange Commission, …
Bitcoin / June 26, 2020
Mining Hardware Maker Canaan Looks to Issue $12.4M in Stock to Employees
Cryptocurrency mining application specific integrated circuit (ASIC) producer Canaan filed with the U.S. Securities and Exchange Commission (SEC) to issue around $12.4 million worth of shares to its employees. According to the S-8 form, filed with the SEC on May 27, Canaan is looking to issue nearly $12.4 million of class A ordinary shares with a maximum offering price of $0.24 per share. As Cointelegraph reported in late November 2019, Canaan raised $90 million by selling 10,000,000 shares for $9 each in its initial public offering (IPO). According to Google Finance data, as of press time the firm’s stock had …
Bitcoin / June 1, 2020
Coinbase’s COIN stock reference price set at just $250 as 1,700 staff get free shares
Major United States exchange Coinbase’s COIN stock has received a reference price at $250 from Nasdaq ahead of the much-anticipated direct listing on the stock exchange just hours from now. The price is far below the current FTX pre-trading price of $600, albeit on thin 24-hour volume of under $4 million. The exchange is going public via a direct listing instead of an initial public offering, meaning the reference price is not a direct indicator of the company’s market cap. It simply implies a valuation of $65 billion, which is below other estimates ranging between $68 billion and $120 billion. …
Blockchain / April 14, 2021