China-based bitcoin miner manufacturer Canaan Creative announced today that its board of directors has approved a stock share repurchase program.
The news comes almost a year after the company listed its shares on Nasdaq, pricing them at $9 per share, raising $90 million. Since then, the company has dealt with disappointing revenue figures and internal turmoil. In July, Canaan dismissed four of its senior executives. The company did not comment on the reasoning behind the move, but China-based media outlets reported that the internal restructuring occurred in response to disputes over the company’s long-term strategy. At press time, the stock price was right around $2.
The new share repurchase program that will allow the company to repurchase a maximum US $10 million worth of either its outstanding American depositary shares (ADSs), with each share illustrating 15 Class A ordinary shares, or Class A ordinary shares between the dates September 22, 2020, and September 22, 2021.
A range of factors — including price, trading volume, and general market conditions, in addition to Canaan’s working capital requirements and general business conditions — will dictate both the total count of ADSs repurchased and the timing of its repurchases, according to the announcement.