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

Canaan Inc. shares increased by over 26% after the firm secured a significant order for 50,000 Avalon A15 Pro Bitcoin mining rigs from a US-based company, marking the company's largest sale in three years. CEO Nangeng Zhang emphasized the order as a sign of confidence in Bitcoin mining's long-term growth and the demand for efficient infrastructure. Currently, the US represents 36% of the global Bitcoin hashrate. Despite a 40% year-to-date decline, Canaan's shares have rallied more than 50% over the past six months, trading at $1.31. Meanwhile, the Bitcoin mining landscape is becoming increasingly challenging as mining difficulty and associated costs rise, prompting comments from industry experts like Sam Tabar, who suggested that the mining sector may not survive another halving. Large institutional miners are gaining dominance in the market, with the top four public miners capturing considerable block rewards, although solo miners still achieve successes occasionally.

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