Bitcoin mining equipment maker Canaan skyrockets 41% as the cryptocurrency passes $50,000 for the first time

Bitcoin mining equipment maker Canaan skyrockets 41% as the cryptocurrency passes $50,000 for the first time

Shares of bitcoin mining equipment manufacturer Canaan Creative skyrocketed as much as 41% on Tuesday as bitcoin passed the $50,000 mark for the first time.

Canaan's stock has seen monumental price appreciation over the past six months, rising over 770% amid a historic run for cryptocurrencies and a shortage of crypto mining machines.

The Beijing-based company expects to benefit from higher bitcoin prices in 2021 as the cryptocurrency's rise continues to spark increased demand for mining machines that suppliers can't meet. The shortage will likely lead to higher premiums for Canaan's in-demand products.

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Bitcoin broke the $50,000 mark for the first time on Tuesday after a slew of reports declared institutional investors are setting their sights on digital assets.

The news continues a bull run on bitcoin that started after Tesla announced a $1.5 billion investment in the digital currency on February 8. After Tesla's move, there were reports that JP Morgan and Morgan Stanley are now eyeing bitcoin, leading more investors to jump into the currency for fear of