Bitcoin Mining Stock Gains Momentum as Chinese Economy Suffers

The Coronavirus is starting to be felt across the world. The Chinese economy has been the hardest hit from the Coronavirus. But Bitcoin mining stock gains momentum. China-based bitcoin miner manufacturer Canaan’s stock price surges over 80% amid blockchain stocks rallies.

14 February, 2020 | AtoZ MarketsThe Chinese bitcoin mining company. Canaan went public in November. It becomes the first of three major Chinese bitcoin manufacturers (Bitmain, Canaan and Ebang) to enter the US market. But its stock performance has not lived up to expectations since its debut on the Nasdaq. Since then, performance has dropped more than 50% since the IPO, with a price of $ 4.30, the lowest ever.

Bitcoin Mining Stock Surges

According to a report by local media 8BTC, the bitcoin mining firm, Canaan, has seen its stock prices gain momentum in recent weeks. CAN stock rose more than 80% yesterday, closing at $ 8.05 a share. According to NASDAQ, compared to the previous average trading volume of 250,000, more than 11 million shares were traded.

Analysts believe the recent rally has coincided with the price of bitcoins, which has exceeded $ 10,000. Bitcoin recently crossed the $ 10,000 threshold for the first time since last October. The rally, which started on January 3, lasted more than a month, showing a very bullish dynamic. As of press time, bitcoin is trading at $ 10,240.19.
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Blockchain and crypto stocks in the U.S., Hong Kong, and Mainland China markets have all performed well recently, as digital asset markets continue to strengthen.

Bitcoin halving in May also gave a strong boost to the rally. Bitcoin miners anticipate a halving of their reward in May. But many have gradually abandoned their old mining models. So, it generates a high demand for machines that deliver a higher hashrate and better energy efficiency produced by major manufacturers like Canaan, Bitmain, Ebang and MicroBT.

Read More: IOTA Trinity Wallet Reports Vulnerability Issue

Coronavirus Epidemic in Crypto Mining

A bitcoin hash rate surge has also been expected, as the coronavirus epidemic comes under control. Some manufacturing industries may work overtime to compensate for the two-week production disruption.

In the past two weeks, the coronavirus epidemic has disrupted economic activity in China, including crypto mining. Meantime, the leading mining equipment manufacturers have delayed production and shipments. According to Chen Feng, Canaan’s commercial director, the company already had some 50T A1066 miners delivered in February 15. But the price adjusted due to the low supply on the market.

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