Two executives of the bitcoin mining rig maker Canaan intend to collectively aquire at the very least $2 million worth of company shares, claiming the corporate is “deeply undervalued,” despite income decline.
In step with its annual file launched closing week, Canaan’s total revenues shrank by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.
Canaan Inc. Executives Instruct Self assurance By approach to Non-public Investment
Canaan, a prominent provider of high-efficiency computing alternate choices, has disclosed that its Chairman and CEO, Nangeng Zhang, along with Chief Financial Officer, James Jin Cheng, contain expressed their intent to exercise private funds for a joint aquire of at the very least USD $2 million worth of the corporate’s Class A odd shares, represented by American depositary shares (“ADSs”).
The initiative is field to the corporate’s insider trading protection and complies with glorious pointers.
“We assume that the corporate is deeply undervalued, providing a uncommon funding replacement for us to pursue,” Zhang commented.
Zhang extra elaborated that Canaan is progressing successfully in manufacturing its A14 series mining rigs, gratifying old contract sales orders, including bulk orders from public company possibilities. He elaborated on the progress made in streamlining the manufacturing of A14 series mining machines, advancements within the improvement of next-generation A15 series devices, and ongoing R&D of the A16 series.
Their resolution follows the recent fourth halving match on the Bitcoin community, sooner or later of whichZhang emphasised its seemingly for emerging alternatives within the Bitcoin ecosystem.
“Now that the fourth bitcoin halving happened on Friday, we demand many extra alternatives will emerge within the ecosystem,” Zhang added.
Established in 2013, Canaan is a technology company specializing in ASIC high-efficiency computing chip invent, chip compare and improvement, computing equipment manufacturing, and machine products and services.
Beneath the management of Nangeng Zhang, the corporate’s founding team accomplished a foremost milestone by shipping the realm’s first batch of mining machines incorporating ASIC technology in Bitcoin’s history below the emblem name Avalon. In 2019, Canaan done its preliminary public providing on the Nasdaq World Market.
Bitcoin ASIC Producer Canaan Stories Decline in Income Irrespective of Bull Market
📉 Canaan – a China-based Bitcoin ASIC producer and operator – misplaced nearly half of its income from mining machine sales closing quarter, in accordance with its Q3 earnings.#CryptoNews #BTChttps://t.co/yB1LNS4Ceu
— Cryptonews.com (@cryptonews) November 28, 2023
Irrespective of the ongoing bull market within the cryptocurrency attach, ask for Bitcoin application-teach constructed-in circuit (ASIC) miners and servers has remained subdued.
On February 27, Bitcoin ASIC producer Canaan launched its earnings file for the fourth quarter of 2023. The corporate disclosed income of $49 million, marking a 16% decrease when put next to the identical duration the old twelve months.
Additionally, Canaan reported a widening rep loss of $139 million, when put next to $91.6 million within the fourth quarter of 2022. Irrespective of an uptick within the quantity of computing strength offered and a recovery in Bitcoin’s ticket to $66,089, Canaan attributed the income decline to selling its ASICs at decrease prices relative to the marketplace sooner or later of closing twelve months.
Also, Canaan’s annual file for the twelve months 2023 printed a rep loss of $414.2 million, when put next to a rep income of $69.9 million in 2022. Entire revenues, including product and mining income, declined considerably by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.
The income decline changed into as soon as attributed to a decrease within the practical selling ticket of Canaan’s Bitcoin mining machines on a per-Thash basis, losing from US$40.8 per Thash in 2022 to US$8.9 per Thash in 2023. This decrease resulted from mushy ask and a ticket tumble in computing strength sooner or later of 2023.
Irrespective of the income decline, mining income amounted to $34 million in 2023, a minute bit bigger than the $32.5 million recorded in 2022, in accordance with the corporate’s file.
