Following the bitcoin rate, shares of Canaan, Chinese manufacturer of mining equipment traded on the US exchange, went to the moon. Within 24 hours, its shares jumped in price by 37%.
On March 10, shares of mining machine maker Canaan soared 37% as bitcoin’s market cap reached $1 trillion again. Canaan shares are now trading at $26 per share.
Canaan stocks turned to bull run about six months ago along with the rest of the cryptocurrency market. In six months, securities skyrocketed more than 1000%. In September 2020, shares of the mining equipment manufacturer was trading at just $2.06 per share. Canaan recently announced that it had received “purchase orders totaling more than 100,000 units of bitcoin mining machines from customers in North America.”
Canaan was founded in Beijing in 2013 by Nangeng Zhang. The company manufactures special purpose integrated circuits (ASICs) for bitcoin mining.
Canaan ran an IPO at the end of November 2019 on the US stock exchange Nasdaq, raising $90 million. The placement could hardly be called successful. Canaan originally planned to raise $400 million, but due to the crypto winter, interest in bitcoin mining fell sharply, and Canaan lowered the target for IPO by 75%. A week before the IPO, Canaan lost the support of its largest banking partner, Credit Suisse.
After the IPO, Canaan’s shares went down. If during the IPO they were sold at a price of $9 to $11 per share, then by mid-2020 they cost only a couple of dollars.