ASIC Mining Rig Manufacturer Canaan Reveals $100 Million Stock Buyback Program

The application-specific integrated circuit (ASIC) shaper Canaan has revealed the steadfast is offering a banal buyback for up to $100 million. Canaan’s president and CEO Nangeng Zhang highlighted successful a U.S. Securities and Exchange Commission (SEC) filing that the determination was owed to issues with “recent planetary frictions” and “domestic quarantine measures for Covid-19 control.”

International Conflict and Covid-19 Lockdowns Push Canaan to Launch a $100 Million Stock Buyback

On March 16, the bitcoin mining rig shaper Canaan published a filing with the SEC that explains the steadfast is initiating a banal buyback worthy $100 million. Under the repurchase program, Canaan volition acquisition American depositary shares that bespeak Class A shares via unfastened marketplace transactions and privately negotiated transactions.

Canaan’s CEO Nangeng Zhang revealed wherefore the institution chose to proceed with a banal buyback, highlighting planetary struggle and the existent Covid-19 quarantines taking spot successful China. During the past 2 weeks, China has been dealing with a Covid-19 outbreak, and Hangzhou, the sub-provincial metropolis wherever Canaan is headquartered, has been connected lockdown for implicit a week.

“We noticed that the caller planetary frictions, the home quarantine measures for Covid-19 control, and macro factors crossed the superior marketplace person adversely impacted our banal performance,” Canaan’s CEO said. “Given the beardown fundamentals and currency presumption of the company, we would similar to allocate further superior to thrust worth for our shareholders.”

At the clip of writing, Canaan’s shares are swapping for $4.64 per share aft touching an all-time precocious worth connected March 12, 2021, astatine $34.63 per share. Percentage-wise, Canaan’s shares saw a ample 86.60% driblet successful USD worth successful conscionable implicit a year. Following Canaan’s banal buyback announcement, Canaan’s shares jumped 2.42% higher successful value.

“This caller stock repurchase programme demonstrates our assurance successful the company’s semipermanent outlook,” Nangeng Zhang’s announcement concluded. “We stay committed to our diligent and agile operations, and judge that we are capable to flooded the challenges and marque greater achievements.”

What bash you deliberation astir Canaan initiating a banal buyback programme for $100 million? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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