Canaan Inc. (NASDAQ: CAN), a leading provider of supercomputing solutions, saw its stock soar 10.90% in pre-market trading on Monday. The significant uptick comes as the company announced the launch of a pioneering mining project in Canada and amid a broader recovery in the cryptocurrency market.

The Bitcoin mining hardware manufacturer revealed its latest initiative: a pilot project in Calgary, Alberta, Canada, in partnership with Aurora Energy Ltd. This innovative venture aims to convert flared natural gas into low-cost power for high-density computing applications, including Bitcoin mining and AI workloads. Canaan expects the project to significantly reduce annual CO₂-equivalent emissions by approximately 12,000 to 14,000 metric tons, showcasing the company's commitment to sustainable mining practices.

The stock's surge also aligns with a general rebound in cryptocurrency-related stocks following a tumultuous weekend selloff. The crypto market is recovering, with the total market value rising more than 6% to exceed $4 trillion. This positive momentum is largely attributed to easing trade tensions between the US and China, as recent statements from high-ranking US officials signaled openness to a deal with China. As a key player in the crypto mining hardware industry, Canaan stands to benefit from this renewed optimism in the sector, further fueling investor interest in its stock.