Canaan shares surge after 50,000-rig Bitcoin mining deal

Canaan Inc. shares rose over 26% following the announcement of a major sale involving 50,000 Avalon A15 Pro Bitcoin mining rigs to an undisclosed U.S.-based company. This transaction marks Canaan's largest sale in more than three years, signaling a strong belief in the long-term viability of the Bitcoin mining sector according to CEO Nangeng Zhang. The U.S. is noted for contributing 36% of the global Bitcoin hashrate, underscoring its dominance in the mining landscape. Canaan's shares hit $1.31 on Nasdaq, a significant recovery after over 50% growth in the last six months, although still down 40% year-to-date. As Bitcoin mining increases in difficulty, with the current rate at 150.84 trillion, some miners are exiting the market, with warnings about the industry's sustainability amid rising operational costs. Nonetheless, large institutional miners continue to dominate, capturing substantial block rewards despite occasional successes by solo miners.

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