In the same period of time, bitcoin rose about 39%.
Thanks to the improved profitability of mining, demand for ASICs may be increasing.
The stock of Canaan, inc stands out in the ranking of bitcoin mining stocks with a rise of close to 40% in the last day, at the time of writing. In comparison, bitcoin has risen about 39% over the last month, from $60,000 to $89,600. This small positive difference in favor of the company related to BTC mining symbolizes the good performance that the Bitcoin industry has when the currency has a rally bullish.
According to the quote datathe stock went from costing USD 1.41 to almost USD 1.90 for each action within a single day. At the time of writing, CAN, as is the stock’s identifier, experienced a small pullback from highs, each costing $1.62. Despite the positive movements, this stock is still quite far from its all-time high, reached in 2021, when it was worth up to $39.
What is Canaan Inc?
Canaan is a bitcoin ASIC (application-specific integrated circuit) manufacturing company based in Singapore and in Asian countries other than the United States. It has a complete line of mining rigs, called AvalonMiner, with hash rates ranging from 90TH/s to 185TH/s, and energy efficiency from 18.5 J/TH to 38 J/T.
This company develops minimalist mining devices, such as the Avalon Nano 3, which is a small personal portable heater as well as a bitcoin miner. Finally, Canaan also has for sale mining containers equipped for the production of bitcoin, called Avalon Box, 20 and 40 feet long.
Canaan was the first manufacturing company in history to launch an ASIC (specific integrated circuit) to mine bitcoinin 2013.
Before any other type of hardware, mining was done with CPUs (central processors) of common computers. In 2010, miners began using GPUs (graphics processing units) due to their greater parallel processing capacity compared to previous ones, which increased mining efficiency. Lastly, came the ASICs, thanks to Canaan.
A manufacturing company between companies that produce bitcoin
According to Hashrate Index dataCanaan has a market capitalization of $512 million.
Other companies related to mining, such as Marathon, Riot or Cleanspark, have a much larger scale than Canaan, reaching and exceeding 5,000 million market capitalization.
The difference between the companies is that the former is an equipment manufacturer, and these are dedicated to the production and “extraction” of bitcoins through mining, block subsidy and commission rewards. According to the Hashrate Index ranking, there are more miners than companies that manufacture ASICs, and some of these, such as Core Scientific or Hive, are direct competitors of Canaan in terms of market capitalization.
As reported by CriptoNoticias, a Bitcoin (BTC) mining company announced the purchase of 6,500 Canaan brand ASICs (application-specific integrated circuits) to be destined for a mining center in Paraguay. The miners acquired by Hive, the company involved, are of the Avalon A1566 type. These ASICs have individual processing power (hashrate) of 185 TH/s (terahashes per second), and an energy consumption of 3420 watts, in addition to an energy efficiency of 18.49 watts per unit of terahashes (W/Th).
The request for these equipment to mine in a country like Paraguay, suitable for the task but which significantly sanctions bitcoin mining, has an explanation. The general increase in mining profitability and players doubling down on Bitcoin could be causing greater demand for ASIC equipment in the market, resulting in a rise in the shares of manufacturing companies.
