Canaan Crashed Almost 40% Amid Falling Bitcoin Price and Market Doubts

Bitcoin Mining

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Sead Fadilpašić

Journalist

Sead Fadilpašić

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Sead specializes in writing factual and informative articles to help the public navigate the ever-changing world of crypto. He has extensive experience in the blockchain industry, where he has served...

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Last updated: 

June 26, 2023

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Things are still not looking good for the second largest producer of Bitcoin (BTC) mining equipment, China-based Canaan (CAN), as it shares are searching for news lows after the debut on Nasdaq exchange on November 21, which made this the first mining company that went public on a major stock exchange.

In a few weeks, the price crashed by almost 40%, and at pixel time (18:58 UTC) trades at c. USD 5.6. Trading volume also dropped from USD 4 millions on the first day, to USD 164,000 yesterday.

CAN price chart:

“The market is doubtful whether Canaan Creative can maintain its market position. If the price of BTC continues to drop, its stock price will continue to face pressure,” Jack Yang, Partner at Beijing-based token data and rating agency TokenInsight told Cryptonews.com.

The Bitcoin market has a great affect on company’s stock price, which is a sentiment amplifier for BTC prices in U.S. stocks, he added.

“According to the Canaan Creative IPO prospectus, more than 99% of Canaan Creative’s current revenue was contributed by the mining machine, and their artificial intelligence product contributed less than 1%, meaning their revenue structure is relatively simple,” he said.

Looking at the charts, BTC was dropping at the time CAN was listed, and it’s been dropping in the last week as well. In just the last three days, it fell around 5%.

BTC price chart:

Moreover, Yang adds that Canaan’s major competitors, Bitmain and WhatsMiner, came out with their good news recently. WhatsMiner launched their new product M30s, while Bitmain saw Jihan Wu returning as the CEO. Wu has announced a series of measures aimed at boosting the BTC mining industry, which comes after they’ve confirmed the plans to introduce two new types of mining rigs and launch repair centers worldwide, as the company reportedly prepares for its own IPO in the U.S.

Also, in a recent ranking of the five best performing Bitcoin mining machines, Bitmain got four places, while Canaan one.