Mining Machine Maker Canaan Rises 20% as Bitcoin Reaches a New All-Time High

16 February 2021

Nasdaq-listed cryptocurrency mining machine maker Canaan Creative (CAN) has rocketed 27% Tuesday morning as bitcoin hit a new all-time high.

  • Canaan is currently trading at $16.55, up from its Friday close of $13.04, according to TradingView.
  • The company has gained nearly 250% month-to-date outpacing the rise in the cryptocurrency its machines mine. Bitcoin has gained over 65% so far in 2021 after setting new record highs above $50,000 Tuesday.
  • Higher prices for bitcoin means increased demand for mining machines and a bigger premium for those machines.
  • Shares of Canaan first closed above the company's November 2019 listing price on Friday of around $12 before the U.S. holiday weekend.
  • CEO Nangeng Zhang recently said the company "can now forecast our revenue much more precisely" after shifting its client base in late 2020 "to mostly publicly traded companies and bitcoin-focused investment funds which tend to place sizable orders with longer-term commitment."
  • Previously, the company mostly sold mining machines to individual operators "who may not have longer-term planning," Zhang said.
  • The Hangzhou, China-based company has a market value of $1.7 billion, per TradingView.
Canaan shares trading since November 2020.
Source: TradingView
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