Wall Street Analyst Says Bitcoin Mining Equipment Maker Canaan Could Grow 5X
Benchmark analyst Mark Palmer believes that Singapore-based Bitcoin mining ASIC chip and rig maker Canaan (CAN) has faced challenges but has the potential to achieve five years of success.
Palmer began coverage of the ADR last Tuesday with a “buy” rating and a $3 price target. The stock closed at $0.62, down 72% from the start of the year.
Canaan's strategy includes developing ASIC chips and rigs for Bitcoin, as well as expanding its own mining operations, particularly in the United States, Palmer said.
“CAN's vertical integration sets the company apart in the Bitcoin mining space, providing it with revenue from both chip and rig sales and its own mining operations,” he wrote.
Palmer also emphasized that Canaan's entry into the home mining rig market has helped diversify the company's revenue.
The equipment manufacturer is actively increasing its capacity for independent mining both in the US and abroad.
“While the company only generated 16.3% of its revenue from self-mining operations in 2024, it plans to increase the total computing power required for these operations to 10 EH/s in North America and 15 EH/s globally by mid-2025,” Palmer added.
Canaan has a holding of 1,408 bitcoins, which are currently worth about $133 million, or nearly 70% of its current market cap, Palmer said. That should support the company's valuation.
Read more: HPC-exposed Bitcoin miners underperform BTC for third straight month: JPMorgan
Source: cryptonews.net
