The shares of the Canaan mining company showed a sharp increase by 80%, after a steady decline during the Q4 2019, The Block reports. After the initial public offering (IPO) on November 21, Canaan's stock price fell nearly 40% over the course of several weeks.
Compared to the original stock price of $13 on the launch day, it decreased to $5.25 by mid-December. However, Canaan was in the spotlight on January 12: at the close of trading day, the company's shares were valued at $8.04, which is 80% higher than the opening price of $4.42. More than 11 million shares were sold during that day, compared with an average daily trading volume of around 250,000 units.
Canaan became the first major mining company to enter Nasdaq, being ahead of Bitmain, another major Chinese mining company. However, expectations from the Canaan IPO in the United States did not come true: the company raised only $90 million out of the planned $400 million.
The current surge in interest in company stocks may be due to a bullish trend in the cryptocurrency market, as well as the upcoming bitcoin halving. Most recently, the company introduced 5-nanometer chips to increase the power and performance of mining equipment.
Image courtesy of China Knowledge