The sun is shining on the cryptocurrency space today. One winner is Canaan (NASDAQ:CAN), with shares up nearly 40% in intraday trading. Without company news, what is causing the rally in CAN stock? And what else do you need to know?
To start, investors should know that Canaan is a Chinese company participating in the crypto rush. The maker of Bitcoin (CCC:BTC) mining machines has been on a tear in February, after briefly stalling out. It seems that Chinese crypto plays were initially overlooked. Today though, it is clear that there is no need to worry.
But what exactly is helping CAN stock spike? As InvestorPlace Web Editor Vivian Medithi reported earlier in February, Canaan was benefitting from renewed interest in the entire sector. Plus, the company shared that it had a better revenue outlook than before. This comes after it received 100,000 orders for its mining machines in North America. Investors should note that Canaan is the second-largest designer and manufacturer of BTC mining machines in the world.
Today, it seems that Canaan is once again benefitting along with the sector.
Analysts at Citi published a new report stoking interest in Bitcoin. The highlights? Bitcoin is at a turning point, and rapidly moving into the mainstream. Although BTC remains off its all-time high, the cryptocurrency is quickly turning around. At the time of writing, it was trading for just under $49,000. Experts predict that we will soon see prices back above $50,000. That alone bodes well for Canaan and other so-called picks-and-shovels plays.
Additionally, many peer companies are on the move today. Marathon Digital Group (NASDAQ:MARA) is on the move after a name change. And Chinese crypto company SOS (NYSE:SOS) is rallying after responding to short-seller allegations. All things are combining to creative a favorable story for CAN stock.
What to Know About CAN Stock
So what else do you need to know about Canaan and CAN stock here? Perhaps the most important element of the story is that Canaan and its peers move along with the price of Bitcoin. With a resurgence of interest and bullish sentiment, it makes sense that CAN shares are also spiking today.
And with that in mind, things are looking up. Top Bitcoin price predictions call for prices above $100,000, and some go as high as $600,000. Just today, Nik Bhatia wrote for CoinDesk that there is a clear case for BTC to hit $1 million. Not every mining and blockchain company will survive, but at this point, CAN stock is one worth watching.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.