Canaan Creative (NYSE:CAN) stock surged in trading for the second time this week as the extended rally in cryptocurrencies continued to boost associated stocks. CAN stock is particularly well-positioned to benefit as a maker of Bitcoin (CCC:BTC) mining machines, presently scarce and in high demand.
Last week, Canaan announced “improved revenue visibility” for 2021 after receiving orders for 100,000 mining machines in North America, many of which were prepaid. Chairman and CEO Nangeng Zhang attributed the gains to a shift in customer base, with CAN selling more units via bulk orders to publicly traded companies and cryptocurrency investment funds.
Canaan Creative is just the latest beneficiary of the recent rush into cryptocurrencies, which has seen Bitcoin surge past $50,000 per coin and many large companies moving into the space. This week also saw the debut of the first North American Bitcoin ETF. However, much of that investment excitement has overlooked the Chinese cryptocurrency space, making CAN stock somewhat of an anomaly among its geographic peers.
Founded in 2013, Canaan released the first ASIC-powered Bitcoin mining machine and is currently the world’s second-largest designer and manufacturer of BTC mining machines.
CAN stock has consistently gained in trading this week, but Friday’s bull rally was sharper; the stock closed last week at just over $13 per share, before growing to $17.30 by the market close on Thursday; Canaan stock closed Friday trading for $24.79, up 43.05% for the day.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.