Two top executives of Canaan Inc., a leading bitcoin mining rig maker, are set to jointly invest at least $2 million in the company's shares, expressing confidence in its potential despite a significant revenue decline.

Chairman and CEO Nangeng Zhang, along with Chief Financial Officer James Jin Cheng, plan to utilize personal funds for the purchase, citing their belief that the company is "deeply undervalued."

The decision comes in the wake of Canaan's annual report, revealing a stark 67.5% decline in total revenues, dropping from $651.5 million in 2022 to $211.5 million in 2023. Despite this downturn, Zhang remains optimistic about Canaan's future prospects.

Zhang highlighted the progress made in manufacturing the A14 series mining rigs and fulfilling previous sales orders. Additionally, advancements in developing the next-generation A15 series units and ongoing research and development of the A16 series are underway.

The executives' decision to invest follows the recent fourth halving event on the Bitcoin network, with Zhang emphasizing the potential for emerging opportunities in the Bitcoin ecosystem.

Established in 2013, Canaan specializes in ASIC high-performance computing chip design, production, and software services. The company achieved a significant milestone by shipping the world's first batch of mining machines incorporating ASIC technology under the brand name Avalon. In 2019, Canaan completed its initial public offering on the Nasdaq Global Market.

Despite the ongoing bull market in the cryptocurrency space, Canaan's revenue from mining machine sales witnessed a decline. The company reported a 16% decrease in revenue to $49 million in the fourth quarter of 2023 compared to the same period the previous year.

Furthermore, Canaan reported a net loss of $139 million for the fourth quarter of 2023, attributing the decline to selling its ASICs at lower prices relative to the market throughout the year.

In its annual report for 2023, Canaan disclosed a net loss of $414.2 million, with total revenues plummeting by 67.5% to $211.5 million. The decline was attributed to a decrease in the average selling price of Canaan's Bitcoin mining machines and soft demand throughout 2023.

Despite these challenges, Canaan remains focused on its mission, with executives showing their commitment through personal investments, signaling confidence in the company's future prospects amidst a shifting market landscape.