The Chinese company Canaan has announced a share buyback from the market. For these purposes, the manufacturer of mining equipment will spend up to $100 million.
During the year, the company's shares sank by 85%. The company attributed such dynamics to the impact of the coronavirus pandemic and macroeconomic factors in the capital market.
In September 2021, Canaan already committed $20 million to maintain its capitalization.
"Given the company's strong fundamentals and liquidity position, we would like to allocate additional capital to increase shareholder value," the statement said.
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On the back of the news based on trading on March 16, Canaan shares jumped in price by 37.6%.
Separately, the company warned that first-quarter results could be impacted by a lockdown in China due to the COVID-19 outbreak.
Recall that in the fourth quarter of 2021, Canaan reported a 67% increase in revenue compared to July-September (up to $342 million).