Canaan’s bitcoin strategy gains new analyst support
Bitcoin miner Canaan (CAN), based in Singapore, has struggled in 2025. Its shares have plummeted 72% year-to-date. Despite this, analyst Mark Palmer of Benchmark believes the company may be ready for a major rebound.
On Tuesday, Palmer initiated coverage on Canaan’s ADRs with a Buy rating and a $3 price target. With bitcoin back in the spotlight, he sees Canaan’s diversified approach as a potential game-changer.
Bitcoin chip innovation and home mining push
Canaan develops ASIC chips and mining rigs designed for bitcoin operations. According to Palmer, this dual focus—equipment sales and self-mining—is key to its recovery.
“Canaan’s vertically integrated strategy sets it apart in the bitcoin mining sector,” Palmer wrote. He emphasized the company’s effort to scale both product and mining revenues.
Its push into home-use mining rigs has helped Canaan diversify income streams beyond traditional large-scale miners. This move could boost consumer exposure to bitcoin mining directly from home.
Bitcoin mining capacity set to surge by 2025
Canaan is ramping up its self-mining power, especially in North America. Currently, only 16.3% of its revenue comes from self-mining operations. But that’s about to change.
Palmer reports that Canaan aims to grow its total computing power to 10 EH/s in North America and 15 EH/s globally by mid-2025. This expansion will increase its exposure to direct bitcoin yields, which could significantly enhance its revenue stability.
Bitcoin holdings support Canaan’s valuation
Canaan holds approximately 1,408 bitcoin. At current prices, that’s worth around $133 million—roughly 70% of its total market capitalization.
These reserves give the company a cushion during volatile market swings. For investors bullish on bitcoin, this holding adds credibility to Canaan’s valuation and long-term potential.
Canaan’s bitcoin outlook draws investor attention
As bitcoin adoption grows globally, firms like Canaan are gaining renewed interest. Though its stock has taken a hit, its bitcoin reserves and strategic direction offer a compelling turnaround case.
Canaan’s progress in expanding U.S.-based mining operations aligns with global decentralization trends in bitcoin mining. With regulatory clarity improving, the U.S. market could become an important growth engine for the company.
Bitcoin volatility remains the wild card
Despite optimism, Canaan’s fate still depends heavily on bitcoin’s market behavior. Prices remain volatile, and shifts in regulatory or energy policy could affect margins.
But for now, analysts like Palmer believe the stock may be deeply undervalued. As the bitcoin industry evolves, vertically integrated miners such as Canaan could emerge as winners.
Investors with an appetite for risk—and a belief in bitcoin’s future—may find this company’s story hard to ignore.