Canaan Inc. (CAN), a leading provider of high-performance computing solutions for crypto mining, witnessed a remarkable surge of 10.48% in its stock price during pre-market trading on Thursday, November 21, 2024. This upward movement can be attributed to two key factors:
Firstly, the company reported impressive third-quarter 2024 financial results, with total revenue soaring 121% year-over-year to $73.6 million, marking the highest revenue in the past five quarters. Canaan's product revenue reached $64.58 million, fueled by strong sales volume of its mining rigs, while its mining operations produced 147 Bitcoins, generating revenue of $9 million.
Additionally, Canaan's stock benefited from a broader rally in crypto-related stocks overnight, driven by a bullish sentiment in the overall crypto market. Bitcoin, the world's largest cryptocurrency, surged to a new all-time high of $96,000, fueling optimism across the sector and contributing to the pre-market surge in Canaan's share price.
Notably, Canaan secured significant orders for its new A15 series miners from major publicly traded mining companies in North America, such as CleanSpark and HIVE. These orders highlight the growing demand for Canaan's high-performance computing solutions and its expanding presence in the lucrative North American market.
Furthermore, Canaan is actively expanding its mining operations in North America, with strategic plans to reach a deployed computing power of 10 exahash by mid-2025. This ambitious goal reflects the company's confidence in capitalizing on the growing demand for crypto mining and its commitment to strengthening its position in the rapidly evolving industry.
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