Canaan Inc. (NASDAQ: CAN), a leading provider of supercomputing solutions and bitcoin mining equipment, saw its stock soar 5.11% in pre-market trading on Friday. This significant uptick comes in the wake of former U.S. President Donald Trump's pardon of Changpeng Zhao, the founder of Binance, which has ignited renewed optimism in the cryptocurrency sector.

The unexpected pardon of Zhao, who was convicted in 2023 for failing to prevent money laundering, has sent ripples through the crypto industry. Market analysts suggest that this move could potentially pave the way for Binance, the world's largest crypto exchange, to re-enter the U.S. market. Such a development would likely boost overall crypto trading activity and demand for mining equipment, directly benefiting companies like Canaan Inc.

While the path for Binance's return to the U.S. remains uncertain and subject to regulatory approvals, the mere possibility has excited investors. The potential influx of liquidity and increased trading opportunities that Binance's re-entry could bring to the U.S. crypto market appears to be driving positive sentiment across crypto-related stocks. As a major player in the bitcoin mining hardware industry, Canaan Inc. stands to gain from any expansion in crypto trading and mining activities, which explains the notable jump in its stock price.