Canaan Inc. (NASDAQ: CAN), a leading developer of Bitcoin mining hardware, has received a bullish initiation from Benchmark analyst Mark Palmer, who issued a Buy rating and set a $3 price target on the stock.
The call represents a sharp contrast to the company’s recent performance, with shares closing at $0.62 on Monday — down 72% year-to-date. Palmer suggests the stock could be a five-bagger based on its fundamentals and strategic direction.
Canaan is pursuing a two-pronged growth strategy: manufacturing ASIC chips and mining rigs while aggressively scaling its own Bitcoin self-mining operations, especially in North America. Palmer said the company’s vertically integrated model gives it a competitive edge in both hardware sales and mining revenue.
He also noted the firm’s expansion into home-use mining equipment as an important step in diversifying its income streams.
While only 16.3% of 2024 revenues came from self-mining, Palmer highlighted the company’s plan to ramp up to 10 EH/s in North America and 15 EH/s globally by mid-2025.
In addition, Canaan holds 1,408 BTC, valued at roughly $133 million, which amounts to about 70% of its current market cap — a significant buffer that could help support its valuation going forward.
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