Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Canaan Executives Plan to Buy $2 Million in Company Shares, Citing Deep Undervaluation

Two executives of the bitcoin mining rig maker Canaan intend to jointly purchase at least $2 million worth of company shares, claiming the company is “deeply undervalued,” despite revenue decline.

According to its annual report released last week, Canaan’s total revenues shrank by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.

Canaan Inc. Executives Express Confidence Through Personal Investment

Canaan, a prominent provider of high-performance computing solutions, has disclosed that its Chairman and CEO, Nangeng Zhang, along with Chief Financial Officer, James Jin Cheng, have expressed their intent to utilize personal funds for a joint purchase of at least USD $2 million worth of the company’s Class A ordinary shares, represented by American depositary shares (“ADSs”). 

The initiative is subject to the company’s insider trading policy and complies with legal guidelines.

“We believe that the company is deeply undervalued, providing a rare investment opportunity for us to pursue,” Zhang commented.

Zhang further elaborated that Canaan is progressing well in manufacturing its A14 series mining rigs, fulfilling previous contract sales orders, including bulk orders from public company customers. He elaborated on the progress made in streamlining the manufacturing of A14 series mining machines, advancements in the development of next-generation A15 series units, and ongoing R&D of the A16 series.

Their decision follows the recent fourth halving event on the Bitcoin network, in which Zhang emphasized its potential for emerging opportunities in the Bitcoin ecosystem.

“Now that the fourth bitcoin halving occurred on Friday, we expect many more opportunities will emerge in the ecosystem,” Zhang added.

Established in 2013, Canaan is a technology company specializing in ASIC high-performance computing chip design, chip research and development, computing equipment production, and software services.

Under the leadership of Nangeng Zhang, the company’s founding team achieved a significant milestone by shipping the world’s first batch of mining machines incorporating ASIC technology in Bitcoin’s history under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market.

Bitcoin ASIC Manufacturer Canaan Reports Decline in Revenue Despite Bull Market

Canaan – a China-based Bitcoin ASIC manufacturer and operator – lost nearly half its revenue from mining machine sales last quarter, according to its Q3 earnings.#CryptoNews #BTC

— (@cryptonews) November 28, 2023

Despite the ongoing bull market in the cryptocurrency space, demand for Bitcoin application-specific integrated circuit (ASIC) miners and servers has remained subdued.

On February 27, Bitcoin ASIC manufacturer Canaan released its earnings report for the fourth quarter of 2023. The company disclosed revenue of $49 million, marking a 16% decrease compared to the same period the previous year.

Additionally, Canaan reported a widening net loss of $139 million, compared to $91.6 million in the fourth quarter of 2022. Despite an uptick in the amount of computing power sold and a recovery in Bitcoin’s price to $66,089, Canaan attributed the revenue decline to selling its ASICs at lower prices relative to the market throughout last year.

Also, Canaan’s annual report for the year 2023 revealed a net loss of $414.2 million, compared to a net income of $69.9 million in 2022. Total revenues, including product and mining revenue, declined significantly by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.

The revenue decline was attributed to a decrease in the average selling price of Canaan’s Bitcoin mining machines on a per-Thash basis, dropping from US$40.8 per Thash in 2022 to US$8.9 per Thash in 2023. This decrease resulted from soft demand and a price drop in computing power throughout 2023.

Despite the revenue decline, mining revenue amounted to $34 million in 2023, slightly higher than the $32.5 million recorded in 2022, according to the company’s report.

The post Canaan Executives Plan to Buy $2 Million in Company Shares, Citing Deep Undervaluation appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...


    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024