Rajarshi Mitra
Independent Analyst
- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.