Canaan’s Recovery Accelerates as Benchmark Lifts Price Target to $4
Crypto mining equipment manufacturer Canaan (CAN) is entering a renewed growth phase, according to brokerage Benchmark, which has doubled its price target on the company’s shares to $4 from $2, maintaining a bullish outlook.
Canaan’s stock climbed nearly 5% in early Thursday trading to about $1.79, buoyed by improved investor sentiment following its reinstated Nasdaq compliance, a key milestone that Benchmark said removes one of the biggest drags on the stock’s liquidity and perception.
Analyst Mark Palmer said the resolution allows investors to refocus on Canaan’s strengthening fundamentals — led by rising demand for its Avalon mining rigs and expanding self-mining operations.
Palmer highlighted Canaan’s largest U.S. order in three years, with over 50,000 Avalon A15 Pro rigs purchased, alongside continued sales of its immersion-cooled A1566I rigs to CleanSpark (CLSK). He also pointed to the upcoming Avalon Q as a potential growth driver in the consumer mining segment.
Operationally, Canaan reported 9.3 EH/s of deployed mining capacity in September, producing 92 BTC during the month, with holdings of 1,582 BTC and 2,830 ETH. Its average power cost of $0.042 per kWh remains among the industry’s lowest, and further efficiency gains are expected through improved energy aggregation and site optimization.
Benchmark believes Canaan is now positioned for renewed upside, supported by expanding rig shipments, stronger self-mining economics, and easing regulatory pressure. The report noted that recent stock weakness presents an appealing entry opportunity for investors ahead of the company’s next phase of operational growth.
