Benchmark Doubles Canaan Price Target to $4, Signaling Confidence in Turnaround

Canaan’s Revival Strengthens as Benchmark Lifts Price Target to $4

Crypto mining equipment manufacturer Canaan (CAN) is entering a stronger growth phase, according to Benchmark, which has doubled its price target on the company’s shares to $4 from $2 and reaffirmed its Buy rating.

Canaan’s stock climbed 5% to $1.79 in early Thursday trading after the report.

Benchmark analyst Mark Palmer said Canaan’s outlook has improved markedly following confirmation that the firm regained Nasdaq compliance, removing a key overhang that had dampened investor sentiment and liquidity.

Palmer cited rising demand for Canaan’s Avalon mining rigs and expansion of its self-mining operations as the main growth drivers. The analyst highlighted the company’s largest U.S. order in three years — over 50,000 Avalon A15 Pro units — along with repeat orders from CleanSpark (CLSK) for the A1566I immersion rigs.

Canaan’s September update reported 9.3 EH/s of deployed capacity, 92 BTC mined, and holdings of about 1,582 BTC and 2,830 ETH. Its average power cost of $0.042 per kWh remains among the lowest in the sector, Benchmark noted.

With 50,000 new rigs set for delivery in the fourth quarter and cost efficiencies improving, Benchmark expects continued share price momentum. The broker described the recent weakness in Canaan’s stock as “an attractive entry point” for investors.

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