Canaan (NASDAQ:CAN) stock is falling on Thursday following the release of the crypto mining equipment company’s annual report for 2023.
Canaan’s annual report includes several warnings about its business operations. The company is closely tied to Bitcoin (BTC-USD), as its miners are designed for that network. However, they can also mine Bitcoin Cash (BCH-USD), which uses the same system.
Canaan also notes that other dangers to its business include a potential change to the Bitcoin system that would leave its miners inoperable. On top of that, an increase in competition in the space could have a negative impact on the company.
It also doesn’t help that BTC is about to go through its halving event. That’s scheduled to take place sometime this week.
How Will the Bitcoin Halving Affect CAN Stock?
The Bitcoin halving will reduce the rewards that miners receive for working on BTC. That makes them less effective and less profitable. This could also result in a decrease in demand for Canaan’s products as Bitcoin mining becomes less viable. That’s one reason it’s focusing on making its machines more efficient.
It’s possible this concern is weighing on investors today ahead of the Bitcoin halving. That would explain why shares of CAN stock are down 20.7% as of Thursday morning. This comes with 2.1 million shares traded, as compared to a daily average of 16.8 million shares.
There are more stock market stories for traders to sink their teeth into below!
We have all of the hottest stock market news ready to go on Thursday! A few examples include what’s happening with shares of MicroCloud Hologram (NASDAQ:HOLO), Tian Ruixiang (NASDAQ:TIRX) stock and the biggest pre-market movers this morning. All of this info is available at the following links!
More Thursday Stock Market News
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- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
