Canaan Shares Could Surge 5X, According to Wall Street Analyst

Bitcoin mining hardware firm Canaan (CAN) may be severely undervalued, according to Benchmark’s Mark Palmer, who launched coverage on the stock Tuesday with a Buy rating and a $3 price target — suggesting nearly 400% upside from its current level.

Canaan’s American Depositary Receipts (ADRs) closed at $0.62, capping a 72% decline year-to-date, but Palmer sees room for a strong comeback driven by the company’s vertically integrated strategy.

Based in Singapore, Canaan produces specialized ASIC chips and mining rigs, while also expanding its own Bitcoin mining operations, particularly in North America. Palmer said this dual model — selling equipment while mining for itself — gives the company a flexible and scalable revenue base.

He also highlighted Canaan’s entry into the home mining market, which adds a consumer-facing revenue stream and helps diversify its business.

Palmer noted that Canaan plans to ramp up its self-mining power to 10 EH/s in North America and 15 EH/s globally by mid-2025, up from the 16.3% of 2024 revenues currently derived from self-mining.

The company’s 1,408 BTC holdings, valued at approximately $133 million, represent nearly 70% of its market cap — a significant asset that Palmer believes anchors the stock’s valuation as it works to rebound.