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Mining Canaan Shares Up 82% Per Day
Shares of the Chinese mining giant Canaan yesterday rose more than 80% during the day. The company's securities are listed on the Nasdaq exchange, where they rose in price per day from $ 4.42 to $ 8.04. Trading volumes per day rose to 11 million dollars, exceeding the average by 4,300%.
The probable reasons for the rise in the value of securities were analyst Matthew Yamamoto of TheBlock attributed the planned Halving to the Bitcoin network. He is confident that increasing the difficulty of mining these digital coins will increase the demand for more powerful mining equipment manufactured by Canaan. Also, for the same reason, shares of mining giants MicroBT and Bitmain may rise.
Other reasons for the growth of Canaan securities in price include the rise in price of bitcoin. This circumstance attracts new users to the mining industry, Yamamoto is sure. He also announced the gradual recovery of the Chinese market after a raging virus outbreak. This factor will positively affect the growth in the value of shares of companies associated with the extraction of digital coins.
Chen Feng, Canaan’s sales director, suggested that in February and March, the price of digital coin mining equipment should jump. He associated this event with the outbreak of coronavirus, which disrupted the activities of manufacturers of equipment for mining cryptocurrencies for an indefinite period.