Shares of crypto mining hardware company Canaan (Nasdaq: CAN) jumped as much as 18.3% in trading on Monday after announcing a new CFO. James Jin Cheng will immediately replace Tong He, who will remain the company's Director of Finance. Shares held steady in afternoon trading and are up 16.1% at 3:15 p.m. EDT.
The CFO news is notable but doesn't normally move a stock this significantly. But mining stocks are up today in part because Bitcoin (CRYPTO: BTC) traded over $42,600 briefly this weekend. If the price of Bitcoin continues to move higher in general, it'll be good for companies like Canaan.
It doesn't hurt that there's positive momentum across the crypto mining industry. Investors have turned bullish as Bitcoin has risen and Canaan is clearly one of the biggest beneficiaries today.
I don't see today's news as a reason to change your investment thesis on Canaan. CFO changes are relatively common, and shares are still likely to follow the price of Bitcoin more than any other factor. What I'll be paying more attention to is the company's earnings report, which investors should expect about a month from now. Then we'll find out if Bitcoin's move higher is indeed going to help the company's bottom line.