CIFR - Canaan: Watchlist Worthy
2024-06-21 13:10:50 ET
Summary
- Canaan underperformed Bitcoin and major mining stocks, with the stock price down 87% from its all-time high.
- A recent partnership with Cipher Mining signals the potential for increased orders post-Bitcoin halving.
- Q1 financial overview shows sales, operating expenses, and balance sheet improvements, and potential for turnaround with new Avalon A14 series mining rigs and Bitcoin's uptrend.
- Canaan faces competition from BITMAIN, creating the risk of inventory markdowns for Canaan.
This article covers Canaan Inc. ( CAN ), one of the well-known Bitcoin USD ( BTC-USD ) mining hardware manufacturers, with a look at what's in store for the company moving forward as the fourth Bitcoin halving event has taken place. Halving events have been known to impact Bitcoin's momentum in the medium term; this in turn creates a bullish case for most Bitcoin stocks. A primer for readers who might be unfamiliar with Canaan Inc. and its business activities: Canaan Inc. is a Chinese company that manufactures and sells computer hardware and software. The company's main revenue currently comes from its Bitcoin miner manufacture and sales business. Canaan is a pioneer in building application-specific integrated circuits (ASIC) Bitcoin miners. Besides its main business of hardware manufacture, the company also engages in Bitcoin self-mining and holds a substantial amount of BTC on its balance sheet....
Canaan: Watchlist Worthy