Bitcoin broke the psychologically important price level of $7,000 a coin during Monday’s trade, but one crypto-linked stock has fared even worse than the digital asset.
Shares of Canaan, the crypto mining firm, ended the trading day in the red down more than 10% at $4.65. The Chinese company, which debuted on Nasdaq at the end of November, is a manufacturer of ASIC chips used for Bitcoin mining equipment. Canaan is down nearly 50% since its initial public offering, as per CNBC data.
It’s not exactly clear what’s behind the bearish action in Canaan’s stock. Still, it has been documented that crypto-linked equities have been closely tied to the spine-tingly volatile market of digital currencies, which shed more than $6 billion in market capitalization since midnight UTC time. Bitcoin is down nearly 3% over the last 24-hours.