Canaan Inc (NASDAQ:CAN) shares are trading higher Monday after company executives announced intentions to purchase at least $2 million of the company's common stock.
What Happened: Canaan chairman and CEO Nangeng Zhang and CFO James Jin Cheng have informed the company that they intend to use personal funds to jointly purchase at least $2 million worth of the company's Class A ordinary shares represented by American depositary shares (ADSs). Each ADS represents 15 of the company's Class A ordinary shares.
"We believe that the Company is deeply undervalued, providing a rare investment opportunity for us to pursue. The Company is making good progress in streamlining the manufacturing of A14 series mining machines that were previously ordered under contract sales, including bulk orders from public company customers," Zhang said.
"Additionally, we are eager to see the testing result of the next generation A15 series units, and we are also developing the A16 series in the R&D pipeline. Following our usual practice, we will announce their performance once the machine testing is complete. Now that the fourth bitcoin halving occurred on Friday, we expect many more opportunities will emerge in the bitcoin ecosystem."
The news comes less than a week after Canaan filed a prospectus related to a mixed shelf offering in which the company said it may offer and sell up to $300 million of securities from time to time in one or more offerings.
Canaan last reported quarterly results in late February. The company said it had $96 million in cash as of the end of 2023. Canaan is not due to report earnings again until the end of May. Analysts currently expect the company to report a loss of 36 cents per share and revenue of $30.23 million, per Benzinga Pro.
Canaan focuses on ASIC high-performance computing chip design, chip research and development, computing equipment production and software services. The company also generates revenue from mining crypto, specifically bitcoin.
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CAN Price Action: Canaan shares were up 6.54% at $.8014 at the time of publication, according to Benzinga Pro.
Photo: Eivind Pedersen from Pixabay.