Canaan Sells Digital Assets to Buy Back Undervalued Shares
Canaan, a leading manufacturer of Bitcoin mining hardware, has announced plans to sell its Bitcoin and Ethereum holdings to buy back its own shares. The move is aimed at addressing what the company considers an undervaluation in its current market capitalization.
The company's treasury holds approximately $130 million worth of digital assets as of August 3, with 1,915 BTC and 3,952 ETH. Canaan believes that its current share price does not accurately reflect its cash position, digital asset holdings, or underlying business performance.
Nangeng Zhang, Chairman and CEO of Canaan, stated that the company's mining operations continue to generate Bitcoin that can be used as a source of capital. He emphasized that the repurchases will be conducted under the existing share repurchase program, which allows for up to $30 million in buybacks over the next 12 months.
Canaan shares rose around 9% during Tuesday trading following the announcement.