Canaan Creative Stock up 17% as Bitcoin Flirts $10,000
Summary
- Canaan Creative surges 17%, following a 70% decline from its IPO.
- The Bitcoin miner manufacturer seems to be recovering following the Bitcoin correction from $20,000.
Chinese-based Bitcoin ASIC manufacture Canaan Creative saw its stock rise 17% on Tuesday. This comes as Bitcoin briefly reclaimed the $10,000 level yesterday.
Canaan Creative made headlines when it completed its initial-public-offering (IPO) last year for $8.99 a share. However, the IPO has been less than spectacular as the share price continued to decline, reaching a low of $2.0 on June 1st. Despite the declining share price, the company has made numerous strides in recovering from the lack of demand following Bitcoin’s 2018 correction.
Canaan Creative’s 17% uptick may come due to Bitcoin’s surge past $10,000. With Bitcoin mining hardware demand driven by profitability, Bitcoin’s price correlates to mining hardware demand.
While Bitcoin’s price surge may have been beneficial to Canaan Creative’s stockholders, the price volatility has not been kind to Bitcoin shorters. Many Bitcoin shorters woke up to liquidation notices as over a $130 million in Bitcoin shorts were liquidated due to Bitcoin’s brief $600 surge.
Competitor Ebang Files for IPO
Competitor Ebang has recently filed for a $100 million IPO in the United States. Like Canaan Creative, Ebang is one of the dominant players in the Bitcoin hardware manufacturing segment.
Neither Canaan Creative nor Ebang are immune to Bitcoin’s price. Ebang posted a net loss of $42 million in 2019 due to sales heavily correlated with Bitcoin’s price.
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