Canaan’s stock price surged 80%. Is it more profitable to speculate in mining machine stocks than in cryptocurrencies?

On the 13th, Beijing time, the share price of Canaan, a US-listed company, soared 80%, with a market value of nearly 1.3 billion US dollars. Since its listing, Canaan's stock price has been sluggish, maintaining at around 5 US dollars, so this is the first time that Canaan's stock price has soared since its listing.

On November 21, Canaan, as the first stock in the Bitcoin mining machine industry, was successfully listed on the Nasdaq in the United States.

Industry insiders revealed that Canaan's overall market cap is relatively small, so a small amount of capital inflow can help push up the stock price, which is a good target for speculators. On the day of the surge, only more than 3 million funds flowed in, and the maximum amount of funds that flowed in a few days before was only more than 7,000 US dollars, and the overall circulation value was low. Relying on short-term funds to drive the stock price surge is not a solid foundation, and it is expected that there will be a round of correction later.

In fact, there are many negative factors for mining machine manufacturers recently. First, due to the impact of the epidemic, Canaan, Bitmain, and Shenma have announced delays in production, delivery, and after-sales. The resumption of work caused by the epidemic will lead to insufficient production capacity. Second, due to the impact of Bitcoin halving, Bitmain's layoffs indicate that the mining machine industry is not optimistic about the price of the currency after the halving.

Wu Blockchain believes that Canaan's current surge is mainly affected by three factors: first, the price of Bitcoin has risen, breaking through 10,000 US dollars; second, it is affected by the overall rise of US stocks, with indexes such as the Dow Jones and Nasdaq all rising; finally, there is the entry of speculative funds, and a small amount of funds has driven the stock price to rise rapidly.

On the 12th, Canaan Chairman Zhang Nangeng issued an internal letter stating that "during this period, the company has received a lot of orders and feedback from customers, and sales have not been significantly affected by the epidemic." "Can we develop mining machine products with better performance, higher quality, lower prices and costs when other competitors are affected?"

From the perspective of the industry structure, Bitmain is in a period of shock after personnel optimization, and Jihan Wu is eyeing it from the outside; the founder of Shenma is in prison; Wuhan Xindong has been greatly affected by the epidemic; Canaan is relatively stable overall after its successful listing. Whether it can achieve something in 2020 will be known from the subsequent financial reports.