Canaan Inc. (CAN), a leading provider of Bitcoin mining machines, saw its stock soar 5.11% in pre-market trading on Friday. This significant uptick comes in the wake of former US President Donald Trump's pardon of Binance founder Changpeng Zhao, a move that has sent ripples through the cryptocurrency market.

The unexpected pardon of Zhao, who was convicted in 2023 for failing to prevent money laundering, has raised speculation about Binance's potential return to the US market. As the world's largest cryptocurrency exchange, Binance's re-entry could dramatically reshape the American crypto landscape. This prospect has ignited optimism across the crypto industry, benefiting companies like Canaan Inc. that are closely tied to the Bitcoin ecosystem.

Canaan Inc., known for manufacturing high-performance Bitcoin mining hardware, stands to gain from any positive developments in the broader crypto market. The potential influx of liquidity and increased crypto trading activity in the US, should Binance make a comeback, could drive up demand for Bitcoin mining equipment. This, in turn, might boost Canaan's business prospects, explaining investors' bullish sentiment reflected in the stock's pre-market surge.

While the path for Binance's return to the US market remains uncertain and subject to regulatory approvals, the mere possibility has energized crypto-related stocks. As the situation unfolds, investors will be closely watching for any further developments that could impact companies like Canaan Inc. and the wider cryptocurrency industry.