What's Going On With Bitcoin-Related Stock Canaan?

Canaan Inc – ADR CAN shares are trading lower by 4% to $0.83 during Wednesday’s session. Traders and investors are watching for the company’s second-quarter earnings report, confirmed for Thursday’s pre-market session. According to analyst consensus estimates, Canaan is expected to report an EPS loss of 2 cents on revenue of $51.9 million.

What To Watch For: In first-quarter 2024, Canaan reported a revenue decline of 36.5% year-over-year to $35.09 million, exceeding analyst expectations.

Among other notable first-quarter results, Canaan sold 3.4 million Thash/s of computing power and had $54.7 million in cash by the end of March. The company's Bitcoin holdings surpassed 1,000 for the first time.

Read Also: Why Digital Ally Stock Is Skyrocketing

How To Buy CAN Stock

By now you're likely curious about how to participate in the market for Canaan – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Canaan, which is trading at $0.84 as of publishing time, $100 would buy you 119.05 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, CAN has a 52-week high of $3.50 and a 52-week low of $0.72.