Bitcoin miner maker Canaan to issue $12.4 million worth of shares in employee benefit plan

Nasdaq-listed bitcoin miner manufacturer Canaan is set to issue $12.4 million worth of shares in an employee benefit plan.

The company has filed a Form S-8 with the U.S. Securities and Exchange Commission (SEC) on Wednesday, saying that it will issue 51,624,000 Class A ordinary shares at a maximum price of $0.24 apiece.

The Form S-8 filing is required for public companies who want to issue stock or stock options to its employees. It must be filed before a company issues securities.

Canaan is issuing two types of Class A ordinary shares — the bulk ($10.9 million) granted under a 2018 share incentive plan and an additional $1.4 million reserved for future award grants under the same plan.
Source: SEC

The news comes just a few days after Canaan posted a total net loss of $5.6 million in the first quarter of 2020. 

China-based Canaan's stock has been under pressure in recent months and is currently down by over 10% in pre-market hours, according to TradingView. The stock is now trading at around $3; it initially sold for $8.99 apiece in November.