Shares of a major Bitcoin kicker maker are collapsing

Shares of Chinese Bitcoin maker Canaan (Nasdaq: CAN) suffered a hard day yesterday, according to data provided by Yahoo! Finance.

At the time of writing, the company’s stock is trading at $ 3.03, after falling ten percent in the last 24 hours.

Shareholders abandon Canaan

Shares of mining companies kriptovaluti tend to be less volatile as kriptovalutite, which should not be surprising given that they depend on the price of Bitcoin .

Canaan’s serious decline, however, is completely separate from the cryptocurrency market – BTC yesterday reached the level of $ 9,230 on the Bitstamp exchange.

According to Hedgeye CEO Keith McCullough, the largest cryptocurrency has managed to bounce from the bottom end of its risk range, which means that its upward trend remains intact.

Meanwhile, CAN continues to suffer losses after a decline of 32 percent in the value of shares within 24 hours (May 27, 2020).

More trouble

Canaan reportedly reported a loss of $ 5.6 million in Q1, despite offering a 50 percent discount on its crypto mining equipment.

The first cryptocurrency company to go public did not provide guidance for Q2, as the future of its business is uncertain due to the economic downturn in the pandemic and weakening demand for digging hardware.

The fact that Canaan is also facing a lawsuit alleging that they did not disclose “unfavorable facts” about their financial situation.