#Singapore #crypto mining #share buyback #Canaan Inc.

Canaan Inc. Unveils Up to $30 Million Share Repurchase Initiative

Canaan Inc. (NASDAQ: CAN), recognized as a leading innovator in the world of cryptocurrency mining, has made a significant announcement regarding its strategic financial decisions. On May 27, 2025, the company's board of directors approved a share repurchase program allowing for the buyback of up to $30 million worth of its outstanding shares. This program will officially commence today and will extend over the next six months.

This move comes against the backdrop of a volatile market, prompting Canaan's management to act decisively to protect its shareholders. Nangeng Zhang, the chairman and CEO of Canaan, expressed his concerns regarding the current pricing of the company’s shares, indicating that they are undervalued considering the robust business model and long-term growth potential of the firm.

Rationale Behind the Repurchase Program

The decision to initiate the share repurchase program is positioned as a proactive strategy to enhance shareholder value. Zhang emphasized that the company is navigating through turbulent economic waters, including new U.S. tariffs, but remains focused on implementing its strategic plans and driving technological advancements within the crypto mining sector.

By repurchasing shares, Canaan aims to signal confidence in its operational direction and commitment to its shareholders during less favorable market conditions. The shares will be acquired through various means, including open market transactions, block trades, and potentially privately negotiated deals, adhering to the guidelines outlined in the Securities Exchange Act of 1934 and the company’s insider trading policy.

Understanding Canaan's Market Position

Canaan Inc. was founded in 2013 and specializes in ASIC high-performance computing technologies, particularly in chip design and manufacturing for cryptocurrency mining. The company's pioneering efforts in this field date back to 2013 when it launched the first batch of mining machines using ASIC technology under the Avalon brand. Canaan’s legacy and extensive experience bolster its confidence in the ongoing expansion of the bitcoin ecosystem.

Despite the hurdles posed by economic pressures and fluctuating cryptocurrency prices, Canaan is committed to leveraging its industry expertise to maintain its competitive advantage. The company highlighted that its future actions, including share repurchases, would be revisited regularly based on market conditions, trading volume, and internal financial health.

Conclusion

Canaan Inc.'s share repurchase program not only aims to stabilize its stock price but also reflects its leadership’s confidence in the company's future. By prioritizing shareholder value amidst changes in the market dynamics, Canaan Inc. positions itself as a resilient player within the cryptocurrency mining landscape. Investors and stakeholders will be closely monitoring the outcomes of this program as the firm continues to adapt in these challenging economic times.