Canaan (NASDAQ: CAN), a key developer of Bitcoin mining hardware, has received a Buy rating and a $3 price target from Benchmark’s Mark Palmer, signaling a potential upside of nearly 400% from its current price of $0.62.
Despite a 72% drop in stock price this year, Palmer sees significant growth ahead for the company, citing its dual strategy of manufacturing ASIC chips and rigs while also expanding its self-mining operations, especially in North America. This vertically integrated approach positions Canaan to capture revenue from both hardware sales and in-house mining profits.
Palmer also highlighted Canaan’s move into the home mining rig market, which diversifies its revenue and opens new consumer-focused opportunities.
While self-mining contributed only 16.3% of total revenue in 2024, Palmer believes Canaan’s plan to increase its mining capacity to 10 EH/s in North America and 15 EH/s globally by mid-2025 will significantly boost future earnings.
Additionally, Canaan holds 1,408 BTC, valued at approximately $133 million, which Palmer believes provides a solid foundation for its market valuation.
