- Canaan’s inventory jumped as a lot as 37% on Tuesday amid one other run for bitcoin.
- Bitcoin hit a $1 trillion market capitalization for the second time on Tuesday.
- The mining machine maker Canaan just lately introduced it has a 100,000 order backlog for AISC mining machines.
- Watch Canaan trade live here.
Bitcoin mining machine maker Canaan noticed its inventory skyrocket as a lot as 37% on Tuesday as bitcoin pushed previous $1 trillion in market capitalization for the second time in its historical past.
Beijing-based Canaan was based in 2013 by Nangeng Zhang. The corporate manufactures supercomputers to be used in bitcoin mining and is understood for having invented the world’s first ASIC(application-specific built-in circuit)-powered bitcoin mining machine.
Canaan’s inventory has been on a historic run over the previous six months, rising greater than 1,000% as bitcoin continues its mainstream breakout. The mining machine maker traded at simply $2.06 per share in September of final yr.
Canaan’s inventory has been on a tear as the corporate enjoys a rise in mining unit gross sales.
Canaan just lately introduced that it had acquired “buy orders totaling greater than 100,000 items of bitcoin mining machines from prospects in North America.”
Mr. Nangeng Zhang, Chairman and CEO of Canaan mentioned the corporate modified its “operations mannequin” in 2021 which led to the rising gross sales.
Beforehand the corporate had been promoting bitcoin mining machines principally to particular person mining operators, however in late 2020 the consumer base shifted to primarily publicly traded corporations and bitcoin-focused funding funds.
This has led to extra sizable orders with longer-term commitments in addition to improved income forecasting for traders.
For instance of the mining machine producer’s new enterprise mannequin, on February 7 Canaan sold 6,000 of its A1246 model AvalonMiners to Core Scientific.
Canaan traded up 37.13% as of 11:55AM ET on Tuesday.