The application-specific incorporated circuit (ASIC) manufacturer Canaan has actually disclosed the company is using a stock buyback for approximately $100 million. Canaan’s chairman as well as chief executive officer Nangeng Zhang highlighted in a U.S. Securities as well as Exchange Commission (SEC) declaring that the step was because of problems with “recent international frictions” as well as “domestic quarantine measures for Covid-19 control.”
International Conflict as well as Covid-19 Lockdowns Push Canaan to Launch a $100 Million Stock Buyback
On March 16, the bitcoin mining rig manufacturer Canaan released a declaring with the SEC that describes the company is starting a stock buyback worth $100 million. Under the repurchase program, Canaan will certainly buy American depositary shares that mirror Class A shares using free market deals as well as independently worked out deals.
Canaan’s chief executive officer Nangeng Zhang disclosed why the business selected to wage a stock buyback, highlighting worldwide dispute as well as the existing Covid-19 quarantines happening in China. During the last 2 weeks, China has actually been handling a Covid-19 episode, as well as Hangzhou, the sub-provincial city where Canaan is headquartered, has actually gotten on lockdown for over a week.
“We noticed that the recent international frictions, the domestic quarantine measures for Covid-19 control, and macro factors across the capital market have adversely impacted our stock performance,” Canaan’s chief executive officer stated. “Given the strong fundamentals and cash position of the company, we would like to allocate additional capital to drive value for our shareholders.”
At the moment of composing, Canaan’s shares are switching for $4.64 per share after touching an all-time high worth on March 12, 2021, at $34.63 per share. Percentage-sensible, Canaan’s shares saw a huge 86.60% decrease in USD worth in simply over a year. Following Canaan’s stock buyback statement, Canaan’s shares leapt 2.42% greater in worth.
“This new share repurchase program demonstrates our confidence in the company’s long-term outlook,” Nangeng Zhang’s statement ended. “We remain committed to our diligent and agile operations, and believe that we are able to overcome the challenges and make greater achievements.”
What do you consider Canaan starting a stock buyback program for $100 million? Let us understand what you consider this topic in the remarks area listed below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This write-up is for informative functions just. It is not a straight deal or solicitation of a deal to get or market, or a suggestion or recommendation of any kind of items, solutions, or business. Bitcoin.com does not give financial investment, tax obligation, lawful, or accountancy guidance. Neither the business neither the writer is liable, straight or indirectly, for any kind of damages or loss triggered or affirmed to be brought on by or about using or dependence on any kind of material, products or solutions pointed out in this write-up.
