Crypto News– Two executives from Canaan, a manufacturer of bitcoin mining rigs, are looking to acquire at least $2 million worth of company shares, asserting that the company is currently deeply undervalued and anticipating that many more opportunities will arise following the recent block reward halving of the leading cryptocurrency.
Canaan Executives Look to Acquire Company Shares Worth Over 2 Million Dollars Post-Halving
In a statement released on Monday, the Nasdaq-listed company revealed that Nangeng Zhang, the chairman and CEO of Canaan, along with James Jin Cheng, the CFO, plan to jointly purchase a minimum of $2 million worth of the firm’s class A ordinary shares represented by American Depositary Shares. Zhang stated in the announcement, We believe that the Company is deeply undervalued, providing a rare investment opportunity for us to pursue.
This decision by the executives follows the fourth halving of the bitcoin network last week. Zhang remarked, Now that the fourth bitcoin halving occurred on Friday, we expect many more opportunities will emerge in the bitcoin ecosystem.
Zhang also mentioned that Canaan is progressing well in the manufacturing of its A14 series mining rigs, which were previously ordered under contract sales, including bulk orders from public company customers. Additionally, the company is undergoing testing for the A15 series and is in the process of developing the A16 series.
Revenue experienced a contraction over the course of the previous year
Canaan’s annual report, released last week, revealed a significant shift in its financial performance. The company reported a net loss of $414.2 million in 2023, contrasting sharply with a net income of $69.9 million in 2022. Total revenues, encompassing both product and mining revenues, plummeted by 67.5% to $211.5 million in 2023 from $651.5 million in 2022.
The substantial decline in revenue was primarily attributed to a decrease in the average selling price of Canaan’s Bitcoin mining machines on a per Thash basis, dropping from US$40.8 per Thash in 2022 to US$8.9 per Thash in 2023. This decline was a consequence of soft demand and a decrease in the price of computing power throughout 2023, as highlighted by the company.
Despite the overall revenue decline, Canaan’s mining revenue slightly increased to $34 million in 2023 compared to $32.5 million in 2022, as outlined in the report.
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