Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, saw its stock soar 17.53% during Friday's trading session. The significant uptick comes on the heels of a major contract win in Japan and a broader rally in the cryptocurrency market.

The company recently announced a strategic 4.5-megawatt sales contract with an electrical engineering solutions provider in Japan. This deal involves deploying Canaan's Avalon A1566HA-488T hydro-cooled mining servers to support power grid stability in the region. The innovative application of Canaan's mining hardware for infrastructure purposes has caught investors' attention, showcasing the versatility of the company's technology beyond traditional cryptocurrency mining. The project, set to begin deployment by the end of 2025, aims to help stabilize regional power-grid load through controlled overclocking and underclocking of the servers.

Adding fuel to Canaan's stock surge is the overall positive sentiment in the crypto market. Bitcoin's price has been approaching the $110,000 mark, lifting the entire sector. This broader crypto rally has benefited several companies in the space, with Canaan emerging as one of the top performers. The company's strong position in the mining hardware market, coupled with its expansion into new applications and geographical areas, appears to be resonating well with investors amid the current crypto market optimism.