Canaan's stock price fell to a historical low of 2.36, and the rebound during the flood season depends on only one thing

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On the 30th, the share price of Canaan, the first Chinese mining machine company, plummeted to 2.36, with a market value of only 370 million US dollars. According to the data on the Nasdaq official website, 2.36 has hit a new historical low. The previous lowest share price was 2.81.

When Canaan went public in November, the opening price reached as high as $12.6, which was also the most glorious moment. After that, Canaan's stock price fluctuated violently. The recent high reached 5.97, and then fell all the way. It is said that many big names in the cryptocurrency circle bought at high points and got stuck.

What is strange is that Canaan's stock price is not completely linked to the price of Bitcoin. For example, the price of Bitcoin has rebounded in recent days. In addition, the flood season in Sichuan is coming, and the demand for mining machines has increased. But Canaan's stock price still plummeted to a record low.

Canaan's stock price plunge has little to do with the overall trend of Chinese concept stocks. On Friday, Chinese concept stocks rose overall. The Bank of New York Mellon China ADR Index, which measures the performance of Chinese concept stocks, rose 20.34 points to close at 584.90 points, an increase of 3.60%.

In the final analysis, there are two reasons why Canaan's stock price plummeted:

First, it is still because of the previous short-selling report. The short-selling report pointed out that Canaan's products lack competitiveness. Although it seems unremarkable in the eyes of Chinese professionals, it does have a significant impact on Western investors. The report said that Canaan's market value should be between 100 million and 200 million US dollars.

Second, although Canaan's first-quarter revenue increased year-on-year, it did not show a significant improvement in the competitiveness of its mining machine products and AI products, and there were signs that the gap with its competitors was widening.

Wu Blockchain believes that if the fog is cleared, for any mining machine manufacturer and Canaan, the company's competitiveness depends on only one thing: the performance of the mining machine.

There is only one reason for Canaan's low stock price and poor sales: the A11 series and 8nm chips are not progressing smoothly. Currently, miners on the market have hardly seen this machine, and Canaan's main model is still a 16nm product. At the same time, the Shenma M30 series and the Ant 19 series have already grabbed most of the cake during the flood season.

Previously, the mining machines equipped with Canaan's "world's first" 7nm chip also had poor performance and were not sold on a large scale, so they later abandoned TSMC's 7nm and switched to Samsung's 8nm.

In fact, from the perspective of ecological layout, Canaan should be second only to Bitmain. It not only has AI business, but also has made a lot of external investments, and even company executives have invested in some media. But in comparison, Shenma, which only focuses on Bitcoin mining machines and has a team of more than 70 people, has been able to eat up nearly half of the market share, and is currently firmly in the top two in the market with Bitmain.

This also once again shows that since the mining model is very simple, the mining income only depends on the power consumption ratio of the mining machine. Therefore, the core competitiveness of the mining machine factory is still the performance of the mining machine itself, and it can even be said that it depends on the chip technology. The ecology cannot form a so-called barrier.

However, according to Zhang Nangeng's telephone conference call, mass production and shipment of chips based on Samsung's 8nm process have been achieved in the first quarter of this year, and tens of thousands of products based on this process have been produced. The new product A1146 Pro will also be launched soon. Whether the belated A11 and 8nm series can catch up with the sales during the flood season and gain recognition from miners is still the only factor that determines Canaan's competitiveness.