Canaan TerraWulf and Cipher Mining Stocks-Highs and Lows in Crypto

Trading News - Canaan Inc - ADR (CAN), a stalwart in the computer hardware industry, has been exhibiting a wavering performance, with its stock dipping by -1.31% to 2.26 in Wednesday's pre-market trading. This minor setback, however, doesn't overshadow the fact that the firm's short-term technical score of 30 suggests that it has demonstrated more bullish trading behavior over the past month than 70% of market stocks. Within the computer hardware industry, an expansive sector that comprises 146 different industries, CAN holds a respectable ranking, surpassing 29% of other stocks.

Interestingly, the last month witnessed a 12.25% upsurge in CAN's value, with stock prices oscillating between $1.93 and $2.33, finally settling at $1.93 on June 7. Despite the turbulent journey, market analysts hold a strong buy recommendation for CAN, tethering an average price target of $6.50. This optimistic forecast showcases the enduring potential of CAN, even though shareholders have experienced a 35% dip this year, contrasting with the 10% upturn in the broader market.

Crypto Votality Factors..More

Within the temporal frame of a single year, it's not uncommon for even the most promising stocks to underperform against the market. In the case of CAN, the three-year return average of about 2.3% per year offers a glimpse of optimism. While a downtrend might occasionally cast doubts on the strength of a long-term winner, it can also present an opportune moment for investors to capitalise on, given the quality of the investment is assured. Therefore, it becomes crucial to delve into the company's business performance over an extended period, instead of just a snapshot of the share price.

As a small-cap growth stock in the computer hardware industry, CAN's 80% rating based on the firm's foundational strength and the stock's valuation instills a sense of confidence. The score suggests an increasing interest in the stock, with a score above 90% indicating an intense interest.

Meanwhile, the crypto-market has recently garnered attention due to surges in various stocks, among them being Canaan (CAN 10.71%), TerraWulf (WULF 10.46%), and Cipher Mining (CIFR 10.68%). These companies recorded nearly 11% growth on the day, significantly outperforming the S&P 500 index's marginal 0.3% dip. Iris Energy (IREN 9.52%) wasn't too far behind with an ascent just short of 10%.

The surge in these stocks mirrors the expanding popularity of cryptocurrencies, which is beneficial for miners as the value of their production is intrinsically tied to the state of the crypto market. Recent developments have largely been favorable, with traditional finance companies scrambling to enter the crypto arena. Prominent securities exchange operator Cboe Global Markets, in collaboration with crypto market leader Coinbase, is pushing to establish a Bitcoin ETF.

However, the inherent volatility of cryptocurrencies also leaves room for sudden, sharp downturns. The potential for inflation resurgence, subsequent increases in interest rates by the Federal Reserve and other central banking authorities, or the emergence of scandals within the cryptoverse, could all pose risks.

Among the high flyers in the crypto-market, TerraWulf Inc.'s (NASDAQ:WULF) recent performance is worth noting. Despite closing at $2.39 with a -$0.09 dip during pre-market trading, WULF maintains a solid overall score of 65, indicating its value outstrips 65% of stocks at its current price. The stock's neutral trading pattern over the past month has landed it the 68th highest Short-Term Technical score in the Capital Markets industry. This, coupled with significant insider holdings, signals a promising outlook for the company.

Paul Prager, the Co-Founder of TerraWulf, made the most substantial insider purchase in the past year, acquiring US$2.5m worth of shares at a price of US$7.88 each. This purchase, even when the share price exceeded the current price of US$1.00, denotes a bullish attitude towards the company. It suggests that the insiders see value in the company, reinforcing confidence in its prospects.

TeraWulf has also released an impressive update on their operations for June 2023, reporting a 25% increase in their hashrate capacity to 5.5 EH/s compared to the previous month. Their BTC mined in June also saw a noticeable 8% increase compared to May, tallying up to a total of 347 BTC for June and 909 BTC for the second quarter of 2023. Year to date, they've mined a remarkable 1,441 BTC.

TeraWulf's ability to keep power costs low is noteworthy. In June, they averaged a power cost of $9.3k per bitcoin produced, equivalent to about $0.035/kWh. They've also successfully commissioned Building 2 at their Lake Mariner facility, increasing their self-mining capacity to an impressive 110 MW. Their mining operations, backed by a fleet of over 50,000 miners, promises a robust future for the company.

Cipher Mining (NASDAQ:CIFR) is another key player in the market, with shareholders enjoying an outstanding return of 144% over the last year. CIFR has also seen a substantial increase of 16.26%, with the S&P 500 only increasing by 0.48%. This translates to a total gain of 139.02% for CIFR in the past 12 months, demonstrating its significant potential as a strong buy for Wall Street analysts. The stellar performance of these companies epitomizes the expanding landscape of the cryptocurrency market and the potential it holds for future growth.
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