Canaan’s Rebound Strengthens with Benchmark’s Upgraded $4 Price Target

Canaan’s Comeback Strengthens as Benchmark Doubles Price Target to $4

Canaan (CAN) is gaining momentum again, with Wall Street firm Benchmark doubling its price target on the crypto mining hardware maker to $4 from $2, signaling renewed confidence in the company’s turnaround. The brokerage also reaffirmed its Buy rating.

Canaan’s shares rose nearly 5% in early Thursday trading to about $1.79, extending a recovery that began after the company regained Nasdaq compliance, a milestone Benchmark said removes a “major overhang” that had clouded sentiment and constrained trading activity.

With that issue behind it, the firm is refocusing on its operational progress. Benchmark analyst Mark Palmer pointed to improving fundamentals across both Canaan’s Avalon mining rigs business and its growing self-mining operations.

The company recently secured its largest U.S. order in three years, selling more than 50,000 Avalon A15 Pro units, while also recording follow-on purchases of its A1566I immersion rigs from CleanSpark (CLSK). Palmer also cited the upcoming Avalon Q as a potential breakout product in the consumer mining segment.

Canaan’s September operational update showed 9.3 exahashes per second (EH/s) of deployed capacity, 92 bitcoins mined, and digital asset holdings of 1,582 BTC and 2,830 ETH. The company maintains a competitive average power cost of $0.042 per kWh, among the lowest in the industry, with expectations of further reductions through better site selection and energy sourcing.

Benchmark said Canaan’s fundamentals are improving in tandem with rising hardware demand and operational efficiency, setting up a favorable risk-reward profile. With rig shipments expected in Q4 and continued growth in self-mining capacity, the firm believes the recent weakness in Canaan’s stock offers an attractive entry point for investors.