Canaan Stock Soars 40% on Gas-Powered Bitcoin Mining Pilot

The pilot project, developed in partnership with Calgary-based Aurora AZ Energy, is designed to convert “distributed natural gas resources” into “reliable, cost-efficient power for high-density computing environments,” according to the company’s statement. Distributed natural gas resources refer to small or remote gas sites that can be used locally to generate power instead of sending the gas to power plants. When utilized for Bitcoin mining, such resources could provide cheaper and more reliable off-grid power solutions.

Canaan claims its proposed setup could cut as much as 14,000 tons of carbon emissions each year by using gas that would otherwise be flared. The pilot aims to test whether small, modular systems can reliably power Bitcoin mining and AI computing at lower cost, though the company has not yet released performance data. This initiative represents Canaan’s latest move toward energy-efficient mining solutions following its recent 50,000-unit Avalon A15 Pro order from a U.S. mining customer, which marked the company’s largest sale in three years.

The market response to Canaan’s announcement was immediate and substantial. According to Google Finance, Canaan’s stock jumped more than 40% to close at $1.52 on Monday. Historical data from Nasdaq shows Canaan traded approximately 72.3 million shares on Monday, up from its 30.8 million monthly average. This recorded volume was more than double the company’s typical trading levels seen throughout 2025 and represented one of Canaan’s highest trading sessions this year.

The significant trading volume and price surge reflect strong investor interest in Canaan’s innovative approach to energy utilization in Bitcoin mining. The company’s stock performance demonstrates how strategic partnerships and technological innovations in the crypto mining sector can drive substantial market movements, particularly when they address key industry challenges such as energy costs and environmental impact.

Canaan’s stock rally reflects a wider rebound in Bitcoin mining stocks as investors return to crypto infrastructure plays. Companies such as Marathon Digital (MARA), CleanSpark (CLSK), and Bitdeer (BTDR) have outperformed Bitcoin in October, lifted by the asset’s rise toward record highs and stronger demand for energy-efficient operations. At the time of writing, Bitcoin is trading at about $114,700 per CoinGecko data, despite suffering a sharp “Black Friday” crash over the weekend that triggered over $19 billion in liquidations across the crypto market.

The outperformance of mining stocks relative to Bitcoin itself indicates growing investor confidence in the infrastructure supporting cryptocurrency networks. This trend suggests that market participants are increasingly valuing companies that provide essential services and technological solutions to the crypto ecosystem, particularly those addressing energy efficiency and operational sustainability. Canaan’s gas-to-compute pilot represents exactly the type of innovation that investors are rewarding in the current market environment.