Canaan executives buy shares amid confidence in future

SINGAPORE - Canaan Inc. (NASDAQ: CAN), a company specializing in the innovation of crypto mining, has reported that its top executives have recently increased their investment in the firm through the purchase of shares. Nangeng Zhang, Canaan’s chairman and chief executive officer, together with James Jin Cheng, the chief financial officer, acquired a combined total of 817,268 American Depositary Shares (ADSs) at an average price of $0.76 per ADS. The purchase comes as the stock trades near $0.60, down about 80% over the past six months and significantly below its 52-week high of $3.27. According to InvestingPro analysis, the company currently maintains a market capitalization of approximately $276 million.

This move by Canaan’s leadership is presented as a strong signal of their belief in the company’s long-term potential. "My share purchase underscores my belief in Canaan’s vision and the tremendous opportunities ahead," Zhang stated, emphasizing a perceived undervaluation of the company’s current ADS price compared to its future value prospects.

Canaan, established in 2013 and listed on the NASDAQ Global Market since 2019, is recognized for its pioneering work in ASIC high-performance computing chip design and production. The company has a noted history in the industry, being the first to deliver ASIC technology in bitcoin mining machines to customers under the Avalon brand name. InvestingPro data reveals that while the company holds more cash than debt on its balance sheet, it currently shows weak financial health metrics with a concerning cash burn rate. For detailed insights into Canaan’s financial position and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The purchase of shares by Zhang and Cheng was conducted in compliance with Canaan’s internal trading policy and relevant laws and regulations, indicating alignment with corporate governance standards.

The information regarding the share acquisition is based on a press release statement from Canaan Inc. The company has cautioned that the press release may contain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. These statements have not been independently verified and should not be seen as guarantees of future performance.

Investors and stakeholders in the cryptocurrency and technology sectors may view the share purchases by Canaan’s executives as a reaffirmation of their confidence in the company’s strategic direction and market position within the competitive landscape of crypto mining technology. With a beta of 3.34, the stock exhibits significant volatility compared to the broader market. InvestingPro analysis indicates that the stock is currently undervalued based on its Fair Value model, though investors should note that analysts do not anticipate profitability this year. For a complete analysis of Canaan’s valuation and over 30 additional key metrics, consider exploring InvestingPro’s advanced analytics platform.

In other recent news, Canaan Inc. has initiated a $30 million share repurchase program, reflecting its confidence in the company’s long-term growth potential and its belief that the stock is currently undervalued. This strategic move aims to return value to shareholders and is funded by the company’s existing cash reserves. In addition, Canaan reported financial results for the first quarter of 2025, highlighting a record number of shipments of its A15 series bitcoin mining rigs and a positive gross profit of $0.6 million, marking a significant achievement since the cryptocurrency bear market began. Despite these positive developments, Canaan received a compliance notice from Nasdaq due to its shares not meeting the minimum bid price requirement of $1.00. The company has until November 10, 2025, to regain compliance by achieving a closing bid price of at least $1.00 per share for ten consecutive business days. Benchmark analysts have adjusted their expectations for Canaan by lowering the price target from $3.00 to $2.00 but maintained a Buy rating, indicating potential value in the stock despite the lowered target. Canaan’s recent earnings report, which exceeded management’s forecasts, showcases its resilience in the face of industry challenges. The company is actively addressing the Nasdaq compliance issue and plans to monitor its stock price closely to ensure continued listing.

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