An analyst has suggested that the share price of Canaan, a Singapore-based developer of Bitcoin mining ASICs (application-specific integrated circuits) and equipment, has the potential to rise fivefold.
According to blockchain media outlet CoinDesk on the 6th (local time), analyst Palmer has issued a "Buy" rating for Canaan’s American Depositary Receipts (ADRs), setting a price target of $3. As of the 6th, Canaan’s stock was trading at $0.62, down 72% year-to-date.
Palmer explained that Canaan’s dual strategy is focused on the development of ASIC chips and equipment for Bitcoin mining, as well as expanding its proprietary mining operations, particularly in the United States. He added, "Canaan’s vertically integrated approach differentiates it in the Bitcoin mining sector, enabling it to leverage both chip and equipment sales as well as profits from its own mining operations."
Canaan is expanding its proprietary mining capacity in the U.S. and globally. While only 16.3% of its 2024 revenue came from its own mining operations, Canaan plans to increase the total computing power used in proprietary mining to 10 EH/s in North America and 15 EH/s globally by mid-2025.
