1 day ago
Singapore-based developer of bitcoin mining ASIC chips and rigs Canaan (CAN) has had a unsmooth run, but could beryllium a five-bagger, suggests Benchmark expert Mark Palmer.
Palmer connected Tuesday initiated sum of the ADRs with a bargain standing and a $3 terms target. The shares closed yesterday astatine $0.62, little by 72% year-to-date.
Canaan's dual strategy is focused connected the improvement of ASIC bitcoin chips and rigs, and the enlargement of its self-mining operations, particularly successful the United States, said Palmer.
"CAN’s vertically integrated attack differentiates it wrong the bitcoin mining abstraction portion positioning it to capitalize connected some chip/rig income and proprietary mining revenues," helium wrote.
Canaan's propulsion into location mining rigs has diversified the company's revenue, helium further noted.
The instrumentality shaper is besides increasing its self-mining capableness successful the U.S. and globally.
"While the institution derived conscionable 16.3% of its 2024 revenues from its self-mining operations, it intends to summation the full machine powerfulness driving its self-mining operations by mid-2025 to 10 EH/s successful North America and 15 EH/s globally," Palmer added.
Canaan has a stack of 1,408 bitcoin with a existent worth of astir $133 million, oregon astir 70% of its existent marketplace cap, said Palmer. That should beryllium supportive of the company's valuation.
Read more: Bitcoin Miners With HPC Exposure Underperformed BTC for Third Straight Month: JPMorgan
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