Golden Finance reports that Canaan Inc. (NASDAQ: CAN), an important player in the blockchain technology field, announced today that its board of directors has approved a share buyback program. Under the plan, the company can repurchase outstanding shares worth up to 30 million US dollars within the next six months starting from May 27, 2025, specifically including (i) American Depositary Shares (” ADS “), each ADS representing 15 Class A ordinary shares, or (ii) Class A ordinary shares.
Zhang Nangeng, Chairman and CEO of Canaan Creative, commented on this repurchase plan, saying: “Given the recent market conditions, we believe that the trading price of our company’s stocks largely underestimates the strength of our business model and its long-term growth potential.” Launching this share repurchase program is an active measure we have taken to protect shareholder value, and it also demonstrates our confidence in the company’s strategic direction. Despite the current challenges brought by macroeconomic fluctuations and the new US tariff policy, we will still focus on strictly implementing the strategic plan, promoting technological innovation, and preparing for the recovery of the Bitcoin mining ecosystem.
Under this share repurchase program, the company may repurchase ADSs representing its Class A common stocks through open market transactions (at current market prices), private negotiated transactions, block trades, or any combination of the above methods. In addition, Canaan Inc. will strictly abide by the revised Securities Exchange Act of 1934 and its insider trading policy in conducting repurchase transactions. The number of ADSs to be repurchased and the timing of the repurchase will depend on many factors, including but not limited to price, trading volume and overall market conditions, as well as Canaan Creative’s working capital requirements and general business conditions. The company’s board of directors and/or management will review the share repurchase program on a regular basis and may authorize adjustments to its terms and scale at an appropriate time. The company plans to utilize the existing cash balance to fund this repurchase.
Canaan Creative’s launch of a share repurchase program comes at a time when the cryptocurrency market is facing many uncertainties. On the one hand, the price of Bitcoin fluctuates frequently, influenced by various factors such as the macroeconomic situation and regulatory policies, making market sentiment rather complex. On the other hand, the implementation of the new tariff policy in the United States has brought challenges such as rising costs to the Bitcoin mining industry. Canaan Creative, as an important enterprise in the industry, has also inevitably been affected. Against this backdrop, the company conveys a positive signal to the market by repurchasing stocks, demonstrating its confidence in its own business and determination to safeguard the interests of shareholders. Based on past experience, stock repurchases often can stabilize stock prices to a certain extent and enhance investor confidence. When the market believes that a company’s stock is undervalued, share repurchases reduce the number of outstanding shares, making financial indicators such as earnings per share expected to improve and thereby attracting more investors’ attention. How Canaan Creative’s $30 million share repurchase plan will subsequently affect the company’s stock price and the market’s valuation of it is worth close attention from all market participants.
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