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Canaan, one of many largest bitcoin mining {hardware} makers, introduced a inventory buyback program of as much as $100 million.
The corporate mentioned in a press release that inventory efficiency had been impacted by “worldwide frictions,” quarantine measures as a result of COVID-19 pandemic, and “macro components throughout the capital market.”
“Given the robust fundamentals and money place of the Firm, we wish to allocate extra capital to drive worth for our shareholders,” mentioned chairman and CEO Nangeng Zhang.
After the announcement on Tuesday morning, Canaan shares soared over 30% on the NASDAQ from the market open, in response to Bloomberg market knowledge. CAN’s inventory is at the moment buying and selling fingers at $4.67.
As per Canaan, the corporate might purchase American depositary shares, every representing 15 Class A unusual shares, and Class A unusual shares over the subsequent 24 months, ranging from March 16. The corporate had introduced a earlier buyback program in September 2021.
In a separate assertion, Canaan mentioned that first-quarter revenues may be impacted by logistics delays stemming from COVID-19 quarantine measures in China. On Monday, a five-day lockdown was introduced within the metropolis the place the corporate’s operations are primarily based.
