- Over 11 million shares have traded hands compared to the average trading volume of 250,000 before Wednesday.
- The sudden increase in the share price could be attributed to the upcoming Bitcoin halving.
Bitcoin miner manufacturer Canaan witnessed its stock price surge by over 80% on Wednesday, February 12. By the end of the trading day, CAN, Canaan’s stock had closed at $8.04 per share, implying an increase of 82.73%. A staggering 11 million shares traded hands when compared to the average daily trading volume of 250,000 before this Wednesday.
Before this historic session, Canaan was actually underperforming in the market since its NASDAQ debut in November 2019. Before this Wednesday, CAN had declined by 50% since its IPO and had also hit a $4.31 all-time-low. In an op-ed published on February 12, The Block's research analyst Matthew Yamamoto said that Canaan's stock might be underperforming compared to the Chinese market.
The increase in the stock’s price could be attributed to the upcoming Bitcoin halving in May. Many miners have been cycling out their old mining rigs and replacing them with equipment that has a higher hash rate and better energy efficiency produced by firms like Canaan. Recent Bitcoin price rally may also encourage more miners to scale their operations by purchasing newer rigs. Yamamoto wrote:
As noted by The Block, mining equipment prices change dynamically based on bitcoin price movements. With bitcoin prices up, this should prove to be a bullish signal for Canaan as their equipment fetches higher price tags.