Benzinga | Sep 24, 2021 03:42PM EDT

Why Bitcoin-Related Stock Canaan Is Trading Lower Today

Canaan Inc. (NASDAQ:CAN) shares are trading significantly lower Friday amid a decrease in the price of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

The price of Bitcoin and several other cryptocurrencies drop after China's Central Bank banned all crypto transactions and vowed to stop illegal crypto mining.

The stock could also be trading lower in sympathy with other Chinese companies amid continued regulatory concerns following proposed oversight of the gaming sector in Macau. Regulatory actions in the education and tech space have put pressure on Chinese stocks this year.

Canaan engages in the research, design, and sale of integrated circuit (IC) final system products by integrating IC products for bitcoin mining and related components primarily in the People's Republic of China.

Canaan's stock was trading about 22.5% lower at $6.01 per share on Friday at the time of publication.