The Chinese company Canaan announced a buyback of its shares on the open market. The mining equipment maker will spend up to $100 million on this purpose.
The shares have fallen 85% over the year. The company attributed the decline to the impact of the coronavirus pandemic and macroeconomic factors on the capital markets.
In September 2021, Canaan allocated $20 million to support its capitalisation.
“Given the strong fundamentals and the company’s liquidity position, we would like to allocate additional capital to enhance value for shareholders,” — the statement said.
Following trading-session news on March 16, Canaan jumped in price by 37.6%.
Separately, the company warned that the first-quarter results could be affected by a lockdown in China imposed due to the COVID-19 outbreak.
As reported in the fourth quarter of 2021, Canaan announced revenue rose 67% versus July–September (to $342 million).
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