Canaan Inc. (NASDAQ: CAN), a leading provider of high-performance computing solutions, saw its stock soar 12.16% in intraday trading on Wednesday. This significant uptick follows recent announcements that have bolstered investor confidence in the company's future prospects.

The primary catalyst for the stock's upward movement is a $72 million strategic investment from prominent institutional investors. BH Digital, a division of Brevan Howard, Galaxy Digital, and Weiss Asset Management have collectively invested in Canaan, demonstrating their confidence in the company's potential. This backing from well-known players in the cryptocurrency and financial sectors is expected to strengthen Canaan's market position and fuel its growth strategies.

Additionally, Canaan has unveiled plans for a $72 million registered direct offering of American Depositary Shares (ADS). The company intends to use the net proceeds from this offering to acquire and develop data center sites and facilities in North America. This move aligns with Canaan's strategy to expand its presence in the North American market, potentially capitalizing on the growing demand for high-performance computing solutions in the region. The combination of strategic investment and expansion plans has clearly resonated with investors, driving the surge in Canaan's stock price.