Canaan reversal coming soon.
Technicals: RSI is oversold and looks like it is reversing. The price has also reached a long term support of around $4.6.
Fundamentals: Canaan stock has a high correlation with the price of Bitcoin as they produce the hardware to mine Bitcoin. The market cap is under $850 million. The bullish news is the sale of 30000 of their flagship Avalon mining kits to Genesis Digital Assets (buried in their latest SEC filing investor.canaan-creative.com/static-files/3db9ad81-e6a0-4b78-8a40-43ce3865bd40). The price of the latest Avalon miner is between $6500-$8500 (cryptominer.deals/seller/coin-mining-central). This equates to around $180 million in sales (if we use a lower end cost of $6000 per miner). Genesis Digital Asset also has the option to purchase an additional 150000 units in the future (the total options are for 180000 units minus the purchase of the recent 30000 units). If that sale goes through, its an additional $900 million in sales which could make this stock highly undervalued. The rise in bitcoin price will cause the stock price to also rise alongside. This may be a good long term hold.
Price target: $15+
Note: This is not financial advise. Please do your own research.
Fundamentals: Canaan stock has a high correlation with the price of Bitcoin as they produce the hardware to mine Bitcoin. The market cap is under $850 million. The bullish news is the sale of 30000 of their flagship Avalon mining kits to Genesis Digital Assets (buried in their latest SEC filing investor.canaan-creative.com/static-files/3db9ad81-e6a0-4b78-8a40-43ce3865bd40). The price of the latest Avalon miner is between $6500-$8500 (cryptominer.deals/seller/coin-mining-central). This equates to around $180 million in sales (if we use a lower end cost of $6000 per miner). Genesis Digital Asset also has the option to purchase an additional 150000 units in the future (the total options are for 180000 units minus the purchase of the recent 30000 units). If that sale goes through, its an additional $900 million in sales which could make this stock highly undervalued. The rise in bitcoin price will cause the stock price to also rise alongside. This may be a good long term hold.
Price target: $15+
Note: This is not financial advise. Please do your own research.
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