Canaan, Bitcoin Mining Equipment Manufacturer Steals Wall Street Attention

Wall Street supports Canaan (Doc; Photo. Admfacil)

JAKARTA - Canaan Inc., one of the world's leading Bitcoin mining equipment manufacturers, won the trust of Wall Street, which predicts its shares will rise by around 10% in the near future. This is in line with the increase in Bitcoin prices which hit a record high of over 63 thousand US dollars (around Rp989 million) this week. Canaan, based in China, continues to earn large orders from customers in the crypto mining industry, despite facing challenges from technological tensions between the US and China.

According to Barchart's report published on Nasdaq, stocks in the blockchain and crypto sector are experiencing a significant increase. Some of the big names in the industry, such as Marathon Digital (MARA) and MicroStrategy (MSTR), are currently trading above or approaching Wall Street's average price forecast. Analysts also view Canaan (Can) as a potentially strong stock in the coming year. Currently, Canaan's stock is expected to rise by around 10% in the near future.

The shower is a company engaged in the design and production of Bitcoin mining equipment, known as the ASIC (application-specific integrated circuit). The company claims to be the world's second largest ASIC producer, after Bitmain, which also comes from China. The shower has more than 100 subscribers in more than 20 countries, including the US, Canada, Russia, Kazakhstan, and Indonesia.

The shower continues to accept significant purchase orders from key partners in the crypto mining industry, despite significant risks posed by tensions in US-China technology relations. In January, Canaan announced that it had sold 6,000 units of Bitcoin mining equipment to Hive Blockchain Technologies, a Canadian-based crypto mining company.

In February, Canaan announced that it had sold 10,500 units of Bitcoin mining equipment to Mawson Infrastructure Group, a US-based digital infrastructure company.

These agreements show Canaan's business expertise in producing quality and efficient mining equipment, as well as placing Canaan in a lucrative position to capitalize on crypto demand growth like Bitcoin. Therefore, according to Wall Street experts, the Canaan's growth trajectory is expected to continue, although the Chinese-based crypto stock has not yet gained traction in the market. Canadian shares are rated as Strong Purchase by the two analysts who follow it.

Bitcoin Prices Also Boost Canadian Shares

This week saw a sharp increase in the price of Bitcoin, which hit a record high above 63 thousand US dollars (approximately Rp989 million) on Tuesday, February 29. This spike in prices was triggered by factors such as supply scarcity, institutional interest, and hopes for the launch of Bitcoin's ETF (exchange-trained fund) in the US.

In addition to influencing the crypto market, the Bitcoin price spike has also had a positive impact on crypto and blockchain-related stocks. For example, Coinbase, the US's largest crypto exchange, has risen by nearly 20% in the past week. In addition, MicroStrategy, a software company that has more than 100 thousand Bitcoins on its balance sheet, sees an increase of more than 50% in the last five trading days. In the same positive tone, Marathon Digital, a US-based crypto mining company, has an upward trend of 10% during trading this week.

Quoted from CoinGape, Canaan's shares also followed this upward trend, up about 15% in the past week, from 9.25 US dollars (approximately IDR 145 thousand) on February 25 to 10.64 US dollars (approximately IDR 167 thousand) on March 1. Canadian shares are still well below their IPO price, which reached 13 US dollars (approximately IDR 204 thousand) in November 2019, but with Wall Street optimism and Bitcoin price increases, Canadian shares will probably continue to increase in the future. future.