Canaan executives to buy $2 million in company shares

  • Investing.com
Canaan executives to buy $2 million in company shares

SINGAPORE - Canaan Inc . (NASDAQ: NASDAQ: CAN ), a company specializing in high-performance computing solutions, has announced that its top executives plan to invest a minimum of $2 million in the company's shares.

Chairman and CEO Mr. Nangeng Zhang alongside CFO Mr. James Jin Cheng have expressed their intentions to purchase the company's Class A ordinary shares represented by American depositary shares (ADSs), with each ADS corresponding to 15 Class A ordinary shares.

This investment is to be made using personal funds, conforming to Canaan's insider trading policy and applicable legal guidelines. Mr. Zhang believes that the company is currently undervalued, presenting a unique investment opportunity. He also highlighted Canaan's progress in manufacturing its A14 series mining machines and the development of the A15 and A16 series in the research and development pipeline.

Canaan, founded in 2013 and listed on the Nasdaq Global Market in 2019, is known for its ASIC high-performance computing chip design and production. The company made history in 2013 by shipping the first batch of ASIC-equipped Bitcoin mining machines under the Avalon brand name.

The announcement comes in the wake of the fourth bitcoin halving event that occurred on Friday, with the company's leadership expressing optimism for the opportunities it may bring to the bitcoin ecosystem.

This information is based on a press release statement.

InvestingPro Insights

Canaan Inc. (NASDAQ: CAN) has recently made headlines with its top executives' decision to personally invest in the company's shares, a move that underscores their confidence in its valuation and future prospects. To provide further context to this development, a look at some key metrics and InvestingPro Tips can offer additional insights:

InvestingPro Data:

  • Market Cap: Canaan's adjusted market capitalization stands at $176.26 million, reflecting the market's current valuation of the company.
  • Price / Book (as of Q4 2023): At 0.51, Canaan is trading at a low Price / Book multiple, which could indicate that the stock is undervalued relative to its book value.
  • Revenue Growth (Quarterly for Q4 2023): The company has seen a quarterly revenue growth of 41.97%, showcasing a significant increase in its sales over a short period.

InvestingPro Tips:

  • Canaan holds more cash than debt on its balance sheet, which may provide financial flexibility and resilience in volatile market conditions.
  • The stock's RSI suggests it is in oversold territory, which could imply that the stock might be due for a bounce back if market sentiment improves.

For investors interested in exploring further, there are additional InvestingPro Tips available at https://www.investing.com/pro/CAN, which can provide deeper analysis and more nuanced views of Canaan's financial health and stock performance. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 19 InvestingPro Tips that could guide investment decisions regarding Canaan Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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