Chinese crypto mining rig maker Canaan Inc. announced Monday that its board of directors has authorized a share repurchase program, in a signal of confidence in crypto mining’s future and a belief that its own stock is undervalued.
- Nasdaq-listed Canaan said it may repurchase up to US$20 million worth of its outstanding American depositary shares (ADSs) or Class A ordinary shares over the next 12 months starting Sept. 20, 2021.
- The company plans to fund the repurchases from its existing cash balance.
- “Given our robust business performance in 2021 to date and encouraging outlook, we believe our current valuation does not fully reflect the growth potential of the company,” Nangeng Zhang, chairman and CEO of Canaan, said in a company statement.
- This is not the first time for Canaan to announce plans to buy back shares. In September 2020, it said it intended to repurchase up to US$10 million worth of its shares.
- In the second quarter of this year, Canaan reported a 507.3% year-on-year growth in total net revenues and a 168.6% quarter-on-quarter increase, according to the company’s second-quarter report. The robust revenue growth was “mainly due to the substantial increase in total computing power sold,” the company said.