Canaan Inc. Declares Share Buyback Plan worth up to $30 Million
In a strategic move to capitalize on its undervalued stock price, Canaan Inc., a leading technology company specializing in ASIC high-performance computing chip design, production, and software services, has announced a share repurchase program worth up to US$30 million. The program, which will last for six months, starting from May 27, 2025, aims to repurchase both American Depositary Shares (ADSs) and Class A ordinary shares.
The repurchases will be made through open market transactions, privately negotiated transactions, block trades, or any combination thereof. The number of shares to be repurchased and the timing of repurchases will depend on factors such as price, trading volume, general market conditions, working capital requirements, and general business conditions. The program is funded from the company's existing cash balance.
The rationale behind this share repurchase program is to demonstrate management's confidence in Canaan's future prospects despite macroeconomic volatility, new U.S. tariffs, and challenges faced in some operational regions like Kazakhstan. Nangeng Zhang, the chairman and CEO of Canaan, stated that the repurchase reflects the belief that the shares are undervalued relative to the company’s growth potential.
This initiative aligns with Canaan's ongoing strategic shift towards strengthening core bitcoin mining operations, expanding North American presence, and exiting less favorable markets, such as Kazakhstan. The leadership's commitment is further highlighted by the CEO and CFO personally purchasing a significant number of ADSs (817,268 ADSs at an average price of $0.76 each).
The press release regarding Canaan Inc.'s share repurchase program was issued by Cision PR Newswire, and the contact information for Canaan Inc.'s Investor Relations, Xi Zhang, can be reached at [email protected]. For inquiries related to ICR, LLC., the designated representative, Robin Yang, can be reached at +1 (347) 396-3281 or [email protected].
Canaan Inc. completed its initial public offering on the Nasdaq Global Market in 2019. The company is committed to complying with the Securities Exchange Act of 1934 and its insider trading policy during the repurchases.
Readers can view the press release in its original form at this link: https://www.prnewswire.com/news-releases/canaan-inc-announces-up-to-us30-million-share-repurchase-program-302465547.html.
[1] Canaan Inc. Press Release, Cision PR Newswire (27 May 2025). [2] Canaan Inc. Annual Report 2024, Canaan Inc. (2025).
- The news of Canaan Inc.'s share repurchase program, worth up to US$30 million, signals their confidence in the company's growth potential amidst macroeconomic volatility and operational challenges, such as those faced in Kazakhstan.
- This strategic move is expected to strengthen not only Canaan's financial position but also its position in the cloud technology and business sectors, as it realigns its focus towards core bitcoin mining operations and expanding its North American presence.
- The repurchase compliance with the Securities Exchange Act of 1934 and the company's insider trading policy is crucial to maintain transparency and uphold high standards of corporate governance during the share repurchases.
