SummaryCanaan has made some solid improvements in the AI chip industry when it comes to cryptocurrency mining, which has helped save on energy costs.But their direct tie to the price of Bitcoin, a cryptocurrency, makes it too volatile to consider as a long-term investment in the space.As a result, I am slightly bearish on the company's long-term prospects and continue to avoid the company, with potentially playing it short if the price of Bitcoin rises.Canaan (CAN) is an interesting company when it comes to the AI chip space, specifically for the cryptocurrency mining sub-industry. They've made some good progress on their mining chips and have seen sales steadily rise over the past few years as they save them and their customers on energy costs.But there's a constant negative to all of this - most of their business and long term prospects are still tightly tied with the price of Bitcoin (BTC-USD). There are a few parts to this, so let's explore those before reaching and expanding on my investment conclusion.Multiple Negatives With Bitcoin TiesThe first negative is that the appetite for the company's chips, and the price which they can charge for those chips, is almost directly tied to the price of Bitcoin. The CEO and CFO both acknowledged that as the price of Bitcoin falls, the price for which they can sell their products drops and they lose their ability to generate any meaningful profits.The second part of this is that the ...
