Canaan Executives Plan to Buy $2 Million in Company Shares, Citing Deep Undervaluation

cryptonews.com:

Two executives of the bitcoin mining rig maker Canaan intend to jointly purchase at least $2 million worth of company shares, claiming the company is “deeply undervalued,” despite revenue decline.

According to its annual report released last week, Canaan’s total revenues shrank by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.

Canaan, a prominent provider of high-performance computing solutions, has disclosed that its Chairman and CEO, Nangeng Zhang, along with Chief Financial Officer, James Jin Cheng, have expressed their intent to utilize personal funds for a joint purchase of at least USD $2 million worth of the company’s Class A ordinary shares, represented by American depositary shares (“ADSs”). 

The initiative is subject to the company’s insider trading policy and complies with legal guidelines.

“We believe that the company is deeply undervalued, providing a rare investment opportunity for us to pursue,” Zhang commented.

Zhang further elaborated that Canaan is progressing well in manufacturing its A14 series mining rigs, fulfilling previous contract sales orders, including bulk orders from public company customers. He elaborated on the progress made in streamlining the manufacturing of A14 series mining machines, advancements in the development of next-generation A15 series units, and ongoing R&D of the A16 series.

Their decision follows the recent fourth halving event on the Bitcoin network, in which Zhang emphasized its potential for emerging opportunities in the Bitcoin ecosystem.

“Now that the fourth bitcoin halving occurred on Friday, we expect many more opportunities will emerge in the ecosystem,” Zhang added.

Established in 2013, Canaan is a technology company specializing in ASIC