<

Chinese Bitcoin mining giant Canaan’s shares crashed 40% on Nasdaq since IPO

Cryptocurrency companies have a hard time when Bitcoin price has not made significant progress. Even the bitcoin miner Canaan shares have seen a 40% drop in value since November IPO (initial public offering).

Canaan market monthly view | Source: Nasdaq

Falling Bitcoin prices will cause more damage than we think

There are quite several cryptocurrency miners who withdrew from the industry when the price dropped in 2018. The most used reason is that they are not profitable enough to continue their business. Moreover, when the mining difficulty is growing, the Bitcoin price is nothing special.

Source: Nasdaq

Despite trying to stay active, Canaan shares fell 40% on the Nasdaq. The company was listed on Nasdaq not so long ago. It was this event that made Canaan the first bitcoin mining company to open an IPO on a major stock exchange. However, less than a month later, Canaan’s stock price fell 40%, trading volume decreased from $ 4 mln to $ 164,000.

Currently, all eyes are on Bitcoin halving in May 2020. However, so far, Bitcoin has not had any positive price movements. Many investors most likely decided to withdraw their money before they started losing money.

Referring to the current situation, TokenInsight’s partner, Jack Yang, said:

“Canaan might lose its market position if bitcoin price keeps going down. This is hardly surprising, considering how greatly the BTC market affects companies that produce Bitcoin mining gear.”

About 99% of Canaan’s current revenue comes from mining equipment. Although the company also provides AI products and services. However, this service is not so popular and only accounts for 1% of their revenue.

Bitcoin miner Canaan will lose its competitive position in the market

According to Yang, Canaan’s two biggest competitors Bitmain and WhatsMiner, recently published a series of good news. In particular, WhatsMiner has released a new product called M30. Bitmain’s Jihan Wu, meanwhile, has returned to the CEO position and announced plans to expand into South America. Also, Bitmain has proposed new measures to promote the cryptocurrency mining industry.

On the other hand, Canaan recently did not have any particular information. This shows that the company is one step behind its competitors.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS