Canaan Inc. (CAN) prices pushed sharply higher in tandem with a rise in the bitcoin. Fresh highs from bitcoin motivate traders to continue scooping up shares of bitcoin miner stocks.
Several other companies with close ties to the cryptocurrency market saw their share prices increasing in extended hour on Wednesday. Riot Blockchain (NASDAQ:RIOT), Marathon Patent Group (NASDAQ:MARA), MicroStrategy (NASDAQ:MSTR) and CleanSpark Inc (NASDAQ: CLSK) all were in green.
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Nearly all of these 5 cryptocurrency stocks have at least doubled since the beginning of 2020, led by gains of 1500% in Riot Blockchain and an 1150% return in Marathon Patent Group. One exception is China-based hardware specialist Canaan, which has lost some processing power due to coronavirus mitigation rules. Canaan’s stock price has dropped 37% year to date.
CAN stock earnings
A month ago, the company reported its results for the third quarter. Revenue dropped dramatically and they made a loss. In Q3, Canaan’s revenue was almost 76% lower than last year at $24 million. Sales of computing power were down about 21%. However, the average selling price of that computing power dropped sharply as the company was forced to offload old inventory for a bargain. All in all, a net loss of $12.7 million was booked by the company.
The bottom line
After Canaan Creative launched its initial public offering, share prices plunged for quite a while. In recent months, however, CAN shares have appreciated in value due to bitcoin’s (BTC) price increase. In general, stocks like CAN follow the bitcoin’s lead. If bitcoin is rising, they are moving higher. When bitcoin’s value is rising, they rise. When bitcoin’s value is falling, they fall. The generalization, however, has limits. They rarely change as much as bitcoin. In fact, their volatility is often higher. Therefore, it is impossible to predict their movements on a daily basis.