Canaan Inc. (NASDAQ: CAN), a leading provider of Bitcoin mining machines and AI chips, saw its stock price soar by 6.82% in early trading on Tuesday. This significant uptick comes amid a series of positive developments in the cryptocurrency market and strong demand for Canaan's mining hardware.

The rally in Canaan's stock price is primarily driven by Bitcoin's recent breakthrough to a new all-time high of $125,750, surpassing its previous record. This milestone has reignited interest in Bitcoin mining, directly benefiting companies like Canaan that supply essential mining equipment. The company's ASIC chips, which are at the heart of many high-efficiency mining rigs, have seen a surge in demand as miners seek to capitalize on the current Bitcoin cycle.

Adding to the positive sentiment, Canaan recently secured its largest purchase order in three years from a U.S.-based bitcoin miner for over 50,000 Avalon A15 Pro units. This landmark deal not only validates Canaan's strategic moves but also highlights the growing demand for advanced mining technology in the North American market. The company's stock had already experienced significant gains, jumping 65% last week and 85% over the past month, reflecting investors' optimism about Canaan's market position and growth prospects in the thriving cryptocurrency industry. As the crypto market continues to show strength, Canaan's performance aligns with a broader surge in crypto-related shares, further fueling investor interest in the stock.