Canaan (CAN) Stock: Over 9% Decrease Pre-Market Explanation

By Amit Chowdhry ● May 13, 2021
  • The stock price of Canaan Inc (NASDAQ: CAN) fell by over 9% pre-market. This is why it happened.

The stock price of Canaan Inc (NASDAQ: CAN) – a company that engages in the research, design, and sale of integrated circuit final system products by integrating IC products for bitcoin mining and related components primarily in China – fell by over 9% pre-market. Investors appear to be responding negatively to a decision made by Tesla CEO Elon Musk, which caused the price of Bitcoin to fall.

Musk had announced that Tesla is going to stop accepting Bitcoin for car purchases despite the electric vehicle company holding a massive amount of the cryptocurrency. Environmental concerns caused by Bitcoin mining were cited as a reason for the decision.

The stock price of Canaan closely follows movements in Bitcoin. And Bitcoin fell from about $57,794 as of 11 PM ET yesterday to $49,203 as of 7:25 AM ET today.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.