Canaan executives are seeking to purchase at least $2 million in the company’s stock.
Two executives at Bitcoin mining equipment maker Canaan say the company is “severely undervalued” and have staked at least $2 million worth of the company’s stock, expecting “more opportunities to emerge” after the top cryptocurrency’s block rewards were halved. I’m trying to purchase it.
The Nasdaq-listed company said this: name On Monday, Canaan’s Chairman and CEO Nangeng Zhang and the company’s Chief Financial Officer James Jin Cheng plan to jointly purchase more than $2 million of the company’s Class A common stock, represented by American Depositary shares. “We believe the company is seriously undervalued, providing a rare investment opportunity that we can pursue,” Jang said in a statement.
Management’s move comes after Bitcoin network experienced the fourth halving last week. “Now that the fourth Bitcoin halving occurred on Friday, we expect more opportunities to emerge for the Bitcoin ecosystem,” Zhang added.
Zhang went on to say that Canaan is “making good progress” in manufacturing A14 series mining equipment previously ordered through contract sales, “including large orders from public enterprise customers.” According to Zhang, the company is also testing the A15 series and developing the A16 series.
decline in sales last year
Canaanite annual report Announced last week, the company recorded a net loss of $414.2 million in 2023, compared to net income of $69.9 million in 2022.
Total revenues, including product revenues and mining revenues, decreased 67.5% from $651.5 million in 2022 to $211.5 million in 2023. The decline in revenue was “primarily due to a decrease in the average selling price of Bitcoin mining machines per Thash. “It increased from US$40.8 per Thash in 2022 to US$8.9 per Thash in 2023, which was a result of lower demand and lower prices for computing power in 2023,” the company noted.
Mining revenue was $34 million last year, up from $32.5 million in 2022, according to the report.
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