Wall Street Analyst Sees 5X Upside for Bitcoin Mining Rig Maker Canaan
Singapore-based Canaan Inc. (NASDAQ: CAN), a pioneer in the design of bitcoin mining ASIC chips and rigs, has faced significant challenges in recent years. Yet, despite a steep decline of over 70% in its share price year-to-date, analysts see potential for a dramatic turnaround. Benchmark analyst Mark Palmer recently initiated coverage on Canaan with a bullish Buy rating and an ambitious price target of $3 — representing a potential fivefold return from current levels.
Canaan’s strategic approach is anchored on two complementary pillars: advancing its proprietary ASIC chip and mining rig technology, and expanding its footprint in bitcoin self-mining operations — particularly in the United States. Palmer emphasizes that Canaan’s vertically integrated model sets it apart from many competitors, enabling the company to profit not only from hardware sales but also from mining revenues generated internally.
The company’s foray into home-use mining rigs has further diversified its income streams, catering to a growing segment of retail miners seeking to participate directly in cryptocurrency mining. Simultaneously, Canaan is aggressively scaling its self-mining capabilities. Although only 16.3% of the company’s 2024 revenue stemmed from self-mining, management aims to significantly boost its hash rate — targeting 10 exahashes per second (EH/s) in North America and 15 EH/s globally by mid-2025.
Adding to its strategic advantage, Canaan holds a treasury of 1,408 bitcoins, currently valued at approximately $133 million. Remarkably, this figure represents nearly 70% of the company’s total market capitalization, providing a strong underpinning for its valuation.
With a unique blend of hardware innovation, expanding self-mining operations, and a robust bitcoin reserve, Canaan could be well-positioned to ride the next wave of cryptocurrency market growth. Investors seeking exposure to the bitcoin mining ecosystem may find Canaan an intriguing — and potentially rewarding — opportunity.
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