Canaan, one of the top bitcoin mining hardware manufacturers, has announced a $100 million stock repurchase programme.
Stock performance has been harmed by “international frictions,” quarantine measures due to the COVID-19 epidemic, and “macro issues across the capital market,” according to the business.
“We would like to spend extra capital to drive value for our shareholders given the Company’s excellent fundamentals and cash position,” said chairman and CEO Nangeng Zhang.
According to Bloomberg market data, Canaan stock rose over 30% on the NASDAQ after the news on Tuesday morning. The stock of CAN is now trading at $4.67.
According to Canaan, the firm may purchase American depositary shares, each of which represents 15 Class A ordinary shares, as well as Class A ordinary shares for the next 24 months, beginning March 16. In September 2021, the firm launched a prior buyback programme.
Canaan added in a separate statement that logistics delays caused by COVID-19 quarantine regulations in China may have an impact on first-quarter revenues. A five-day lockdown in the city where the company’s operations are headquartered was declared on Monday.