Bitcoin mining hardware maker Canaan announces up to $100 million in new stock buybacks

Markets • March 16, 2022, 1:09PM EDT

Canaan, one of the largest bitcoin mining hardware makers, announced a stock buyback program of up to $100 million.

The company said in a statement that stock performance had been impacted by “international frictions,” quarantine measures due to the COVID-19 pandemic, and "macro factors across the capital market."

"Given the strong fundamentals and cash position of the Company, we would like to allocate additional capital to drive value for our shareholders," said chairman and CEO Nangeng Zhang.

After the announcement on Tuesday morning, Canaan stocks soared over 30% on the NASDAQ from the market open, according to Bloomberg market data. CAN's stock is currently trading hands at $4.67.

As per Canaan, the company may buy American depositary shares, each representing 15 Class A ordinary shares, and Class A ordinary shares over the next 24 months, starting from March 16. The company had announced a previous buyback program in September 2021.

In a separate statement, Canaan said that first-quarter revenues might be impacted by logistics delays stemming from COVID-19 quarantine measures in China. On Monday, a five-day lockdown was announced in the city where the company’s operations are based.

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Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).