Canaan Creative, a NASDAQ-listed Bitcoin mining company, has announced its share buyback program on Tuesday, as it aims to repurchase up to $10 million worth ordinary shares over the next 12 months.
“Under the share repurchase program, the Company may repurchase its ADSs from time to time through open market transactions at prevailing market prices, privately negotiated transactions, block trades, or any combination thereof,” the SEC filing stated.
“In addition, Canaan will also effect repurchase transactions in compliance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and its insider trading policy.”
The crypto mining company will initiate the buyback program on September 22. It also detailed that the number of stocks to be repurchased and the timing will be decided based on factors like price and market conditions, among others.
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Was listing stocks publically a wrong decision?
Canaan is one of the top Bitcoin mining ASIC manufacturers and sells Avalon-branded miners.
Though based in China, the company went public in the United States market last November, but that turned out to be a bust. Then, the company raised $90 million as the market priced the shares at the bottom of the offering range.
The publicly listed shares of the company are also performing very poorly as their value went down by 78.6 percent from the initial listing price. Canaan shares closed at $1.92 apiece after Monday’s trading hours and the company has a market value of $300.82 million.
The poor market performance of the company can be justified by looking at its declining business. In the latest financial disclosure, Canaan revealed that its revenue decreased by 26.3 percent year-on-year in the second 2020 quarter, but, on a positive note, business jumped 160.9 percent quarter-on-quarter.