Canaan Inc. (CAN), a leading provider of Bitcoin mining hardware, saw its stock soar 5.26% in pre-market trading on Tuesday, continuing the strong momentum from the previous session. This surge follows Monday's impressive 39.45% rally, which was triggered by the company's announcement of a strategic partnership with Aurora AZ Energy Ltd to launch a 2.5-megawatt pilot program.

The pilot project aims to repurpose flared or idle natural gas into electricity for Bitcoin mining and AI infrastructure. This innovative approach aligns with growing industry interest in sustainable energy solutions and decentralized computing, potentially positioning Canaan as a next-generation infrastructure play in both the crypto and machine learning sectors.

Investors appear to be responding positively to Canaan's strategic shift, as the company transitions from traditional mining operations to AI data center development. This pivot could help narrow the gap with the stock's former highs and attract new investor interest, despite CAN stock remaining down over 90% from its 2021 peak of $40.