Canaan Inc, a publicly-traded crypto mining agency, has had a fortunate bounce. The stock is buying and selling up right this moment, +16.75%, on the time of this publish. Hovering slightly below $2.50 per share, it appears that evidently bitcoin’s current surge previous $10,000 has helped the corporate.
Canaan trades on the NASDAQ and has had a tough time because it debuted in late 2019. The Firm has had a bumpy journey down from its excessive of $8.98, again in November 2019. Earlier than right this moment’s bounce, the corporate had been on a risky journey and a few anticipated the stock to fall additional.
Canaan Inc. had its preliminary public providing final 12 months on November 21. Based mostly in China, the corporate trades as American depository shares in the USA. The corporate designs and manufactures built-in circuits for bitcoin mining. Canaan shocked the market once they determined to record on an American exchange. Their opponents, Bitmain and Ebang, haven’t but listed within the U.S. markets.
Bitcoin’s final halving, May 11, 2020, makes the potential reward for corporations like Canaan a harder enterprise. Every occasion cuts bitcoin’s reward for mining in half, which implies that fixing the cryptographic puzzle to seek out or mine new bitcoins turns into more durable. This was initially designed to assist handle bitcoin’s inflation fee however to mining companies the trade will get extra aggressive.