Research institution White Diamond shorted Chinese mining stocks, will Canaan be another Luckin Coffee?
The US investment research firm White Diamond is bearish on the stock of Chinese mining company Canaan (CAN), the first Chinese mining company to be listed on the US stock market. Will it suffer a similar fate as Luckin Coffee, with its stock price collapsing due to fraudulent activities? Due to the complex relationship between research institutions and stock prices, it is advisable to approach this with rationality.
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The U.S. investment research firm White Diamond is bearish on the Chinese mining company Canaan's stock (CAN), the first Chinese mining company listed on the U.S. stock market. Will it follow the same path as Luckin Coffee, leading to a stock price collapse due to misrepresentation? Due to the complex relationship between research institutions and stock prices, it is advised to approach this rationally.
Here are the key points from White Diamond's report (released on May 14):
- Bitcoin mining has been a losing proposition for years, especially for Canaan's inferior mining machines.
- Canaan's next-generation mining machines are less profitable than Bitmain's older versions.
- Following the halving of Bitcoin block rewards this year, miners' Bitcoin profits have sharply decreased.
- Canaan is attempting to transition to another business, AI chips, but has failed for some reasons and may never succeed.
- Considering expected revenues and losses, its current market value of over $850 million is meaningless, and we believe it should be between $100 million and $200 million.
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