Canaan Inc, a publicly-traded crypto mining firm, has had a lucky bounce. The stock is trading up today, +16.75%, at the time of this post. Hovering just below $2.50 per share, it seems that bitcoin’s recent surge past $10,000 has helped the company.
Canaan trades on the NASDAQ and has had a rough time since it debuted in late 2019. The Company has had a bumpy ride down from its high of $8.98, back in November 2019. Before today’s bounce, the company had been on a volatile ride and some expected the stock to fall further.
Canaan Inc. had its initial public offering last year on November 21. Based in China, the company trades as American depository shares in the United States. The company designs and manufactures integrated circuits for bitcoin mining. Canaan surprised the market when they decided to list on an American exchange. Their competitors, Bitmain and Ebang, have not yet listed in the U.S. markets.
Bitcoin’s last halving, May 11, 2020, makes the potential reward for companies like Canaan a more difficult enterprise. Each event cuts bitcoin’s reward for mining in half, which means that solving the cryptographic puzzle to find or mine new bitcoins becomes harder. This was initially designed to help manage bitcoin’s inflation rate but to mining firms the industry gets more competitive.
As a journalist, I report on cryptocurrency, collateralized tokens and stablecoins. I’ve also written about blockchain projects with the potential to transform
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As a journalist, I report on cryptocurrency, collateralized tokens and stablecoins. I’ve also written about blockchain projects with the potential to transform finance. My coverage includes entrepreneurs and stories that educate the public about payment systems, transfer payments, and other use-cases that implement distributed ledger technology (DLT). I focus on how business and regulation have the power to transform or disrupt our economy. I have managed blockchain and currency initiatives for the banking sector. My professional experience has been with Wall Street investment banks for over 20 years in securities and trading. In addition to contributing to Forbes, I am a data scientist and consult for financial institutions managing regulatory, business transformation, and technology programs. I’m a graduate of St. John’s University and Stevens Institute of Technology....