Canaan Inc price forecast: is CAN stock a good buy?

NASDAQ:CAN has found itself included amongst the suddenly surging Bitoin mining sector as the flagship cryptocurrency continues to scream towards new all-time highs on a seemingly weekly basis. Tuesday saw Canaan Inc skyrocket by 20.73% to close the trading session at $21.26 after crashing hard during the recent Bitcoin correction. Shares are still depressed by over 45% since hitting a new 52-week high price of $39.10 just two weeks ago, which is a great example of just how volatile the crypto mining industry is.

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The entire crypto industry surged on Tuesday as two giants of the digital payments sector announced monumental steps towards legitimizing cryptocurrencies. Visa (NYSE:V) reported that by the end of 2021, it would be settling payments over the Ethereum-blockchain network using the USDCoin which is tied to the value of the U.S. dollar fiat currency. Secondly, fintech leader PayPal (NASDAQ:PYPL) also reported it would soon allow its users to pay by Bitcoin, Bitcoin Cash, Ethereum, or Litecoin at over 29 million online merchants via its PayPal digital wallet. Both moves by Visa and PayPal should help to spread the acceptance globally as they are both used in nearly every geographical region in the world.

CAN Stock price

Canaan has also reported that it is hosting its quarterly earnings and fiscal year 2020 earnings during a call on April 12, 2021. For companies like Canaan, it is important to note that revenues and cash holdings are often linked to the volatility of cryptocurrencies so the price of Bitcoin will more likely than not have more of an impact on the stock price then quarterly earnings.