Canaan (NASDAQ: CAN), the Singapore-based manufacturer of bitcoin mining ASIC chips and rigs, may be positioned for a major rebound despite a tough year, according to Benchmark analyst Mark Palmer.
Palmer initiated coverage of Canaan’s U.S.-listed shares on Tuesday with a Buy rating and a $3 price target, implying a potential upside of nearly 5x from Monday’s closing price of $0.62. The stock has declined 72% year-to-date.
Palmer cited Canaan’s vertically integrated strategy — combining hardware sales with self-mining operations — as a key strength in the increasingly competitive Bitcoin mining sector. He noted that the firm’s dual focus gives it the flexibility to generate revenue both from equipment and direct mining activities.
He also pointed to the company’s push into the home mining market as a positive diversification of revenue sources.
Canaan is actively scaling its self-mining capabilities, with plans to boost computing power to 10 EH/s in North America and 15 EH/s globally by mid-2025. Although self-mining accounted for just 16.3% of total revenue in 2024, the planned expansion could significantly shift that balance, Palmer said.
The company also holds 1,408 BTC, valued at around $133 million, or nearly 70% of Canaan’s current market capitalization — a factor Palmer believes supports the firm’s valuation outlook.
