Canaan, leading bitcoin mining hardware maker, has seen its stock price surge by more than 80% on Wednesday February 12, closing at $8.04 per share.

Compared to the previous average trading volume of 250,000, more than 11 million shares have traded hands.

The China-based bitcoin mining machine maker has been public listed in the U.S. last November, becoming the first of the three big Chinese bitcoin miner makers (Bitmain, Canaan and Ebang) to float its company in the stock market, but its stock performance had fallen short of expectations since its debut on the Nasdaq exchange.

Prior to it, CAN had declined by 50% since its IPO and at one time hit an all-time low of $4.31, Its stock price’s latest rally, together with the strong performance of a plurality of other blockchain stocks on the markets in the U.S., Hong Kong and Mainland China, is believed by some analysts as a result of the recent bitcoin price skyrocket which may encourage more miners to scale their operations by purchasing newer rigs and drive more active trading activities.

Bitcoin has recently broke through the $10,000 price point for the first time since last October. The rally, started on January 3, has lasted for more than a month, showing a very bullish momentum. As of press time, bitcoin is trading at $10,416.

Bitcoin halving in May is also a strong impetus to the rally. As bitcoin miners anticipate their mining reward halved in May, many have been phasing out their old mining models, which generate high demand for machines that deliver higher hashrate and better energy efficiency produced by leading manufacturers like Canaan, Bitmain, Ebang and MicroBT.

In addition, markets are starting to show optimism as the coronavirus outbreak has been brought under control. In these days, provinces across the country have begun to organize orderly resumption of work.

In the past two weeks, the outbreak had disrupted economic activity in China including the crypto mining sector. As authorizes impose a quarantine, major mining hardware makers delayed production and shipments. While according to Chen Feng, sales director of Canaan, the company has already had some 50T A1066 miners available which could be delivered since February 15, but the price has been adjusted due to the low supply in the market.

It is expected that the bitcoin hashrate may see a surge after the outbreak is over and some manufacturing industries may work overtime to make up for the over half-month long production break. With the halving effect becoming imminent, stocks of blockchain industry, particularly those of mining equipment manufacturers, may see further rallies in the following months.