Canaan Stock Continues to Tumble As Rumored Internal Struggles Sees 3 Directors Removed
Canaan Creative, a Nasdaq listed Bitcoin miner manufacturer, has dropped some of its directors from the company's registry according to reports from Chinese media. The firm appears to be experiencing an internal dispute going by the unfolding events, although no official announcement has been made. Following the changes, Canaan's Chinese registry now lists Nangeng Zhang as the only director, dropping four other officials.
Zhang, who runs the company's Beijing office, had obtained Canaan's official seal and business license from the Hangzhou subsidiary in late June. This move was meant to acquire majority control in what now appears to be an end to its means.
Officials that were dropped from Canaan's registry include public affairs director Songhua Tu, on-executive director Qifeng Sun, CFO Jiaxuan Li, and Co-chairman Jianping Kong. Notably, all had been listed as directors apart from Songhua Tu.
The update, which was registered on July 6, now recognizes Zhang as Canaan's executive director and general manager. It goes on to add Meng Lu as a supervisor while retaining Li and Kong as part of Canaan's core team. At the moment, the implications of this move are still unclear, but Kong, who previously acted as Co-chairman, has said that he did not withdraw from this position.
According to a statement shared with The Daily Economic News, Kong noted that as far as Canaan's registration goes, no changes have been made to its leadership:
“I'm not familiar with this,” he said when asked about his removal from the company registry. “I am currently on vacation due to a foot injury. I didn't withdraw from my management position.”
He went to say that Canaan's entire company structure is listed in the Cayman Islands and not China. Consequently, its holding subsidiaries in Beijing and Hangzhou can only be affected by changes made to the Cayman registered entity, Jianan Technology. This feud has since been compared to Bitmain's struggles, which saw the company in limbo after Micree Zhan and Jihan Wu differed on control.
As far as financials go, Canaan reported a net loss of $150 million in 2019 and another $5.6 million within the first quarter of 2020. Its share price on Nasdaq has also been on a downtrend since the May bitcoin halving that is yet to favor bullish stakeholders like crypto mining rig manufacturers.