After steadily depreciating well into the last quarter of 2019, Canaan certainly rebounded slightly today. The company was the first example of a large Bitcoin miner to go public on Nasdaq. However, after its initial public offering (IPO) on Nov 21, Canaan stock price values dropped nearly 40% within a few weeks.
Competition with Bitmain helped stocks surge?
Some healthy competition may have helped the bitcoin miner to regain some traction in the market. Canaan came out ahead of Bitmain, another major China-based bitcoin miner, to become the first company traded in a US stock market. Unfortunately, this introduced Canaan to the United States with an IPO valued at under 75% of what was expected.
The mining giant’s stock took a beating from its original value $13 on the day of the launch to drop to $5.25 in mid-December. As of closing today, The Block reported Canaan’s shares are valued at $8.04, a surge of over 80% from its opening price of $4.42.
Canaan has been facing stiff competition from Bitmain and racing to develop technology to stay on top. Most recently, the company unveiled 5-nanometer chips to improve power and performance.