LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Canaan Inc. (“Canaan” or the “Company”) (NASDAQ: CAN) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On April 12, 2021, before the markets opened, Canaan announced its fourth quarter and fiscal year 2020 financial results in a press release. Therein, the Company reported a 93% year-over-year decrease in computing power sold and net revenues for the quarter, citing “a severe supply shortage” of “mining machine” chips during the quarter. The Company also revealed that older machines were sold for lower prices than the newer machines for which Canaan received pre-orders, despite prior statements that the price of bitcoin mining machines typically increased with the price of bitcoin, which had risen dramatically during the fourth quarter.
On this news, Canaan’s American Depositary Receipt (“ADR”) price fell $5.53, or 30%, to close at $13.14 per ADR on April 12, 2021, thereby injuring investors.
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If you purchased Canaan securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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