Bitcoin mining machine maker Canaan skyrockets 37% as bitcoin pushes past $1 trillion market cap for the second time

• Canaan's stock jumped as much as 37% on Tuesday amid another run for bitcoin.
• Bitcoin hit a $1 trillion market capitalization for the second time on Tuesday.
• The mining machine maker Canaan recently announced it has a 100,000 order backlog for AISC mining machines.

Bitcoin mining machine maker Canaan saw its stock skyrocket as much as 37% on Tuesday as bitcoin pushed past $1 trillion in market capitalization for the second time in its history.

Beijing-based Canaan was founded in 2013 by Nangeng Zhang. The company manufactures supercomputers for use in bitcoin mining and is known for having invented the world's first ASIC(application-specific integrated circuit)-powered bitcoin mining machine.

Canaan's stock has been on a historic run over the past six months, rising more than 1,000% as bitcoin continues its mainstream breakout. The mining machine maker traded at just $2.06 per share in September of last year.

Canaan's stock has been on a tear as the company enjoys an increase in mining unit sales.

Canaan recently announced that it had received "purchase orders totaling more than 100,000 units of bitcoin mining machines from customers in North America."

Mr. Nangeng Zhang, Chairman and CEO of Canaan said the company changed its "operations model" in 2021 which led to the rising sales.

Previously the company had been selling bitcoin mining machines mostly to individual mining operators, but in late 2020 the client base shifted to mainly publicly traded companies and bitcoin-focused investment funds.

This has led to more sizable orders with longer-term commitments as well as improved revenue forecasting for investors.

As an example of the mining machine manufacturer's new business model, on February 7 Canaan sold 6,000 of its A1246 model AvalonMiners to Core Scientific.

And Hive Blockchain ordered some 6,400 next-generation bitcoin miners from the company on Jan 23.

Canaan traded up 37.13% as of 11:55AM ET on Tuesday.