The developers of Singapore-based Bitcoin Mining ASIC Chips and Rig Canan (CAN) have a tough run, but could be a five-bager, suggesting benchmark analyst Mark Palmer.
Palmer on Tuesday began covering ADRs with a purchase rating and a $3 price target. The shares closed at $0.62 yesterday, lowering 72% per year.
Canaan’s dual strategy focuses on the development of ASIC Bitcoin chips and rigs, particularly on expanding self-recruitment work in the US, Palmer said.
“Can’s vertically integrated approach will distinguish it within the Bitcoin mining space and place it to take advantage of both chip/rig sales and unique mining revenue,” he writes.
He noted that the push to Canaan’s home mining rig diversified the company’s revenues.
Equipment manufacturers are also expanding their ability to self-recruit themselves in the US and worldwide.
“The company has derived 16.3% of its revenues in 2024 from its self-recruitment business, but it intends to increase the total computer power and drive self-recruitment work to 10 EH/s in North America and 15 EH/s globally by mid-2025,” Palmer added.
Canaan has a stack of 1,408 Bitcoins, with current value of around $133 million or nearly 70% of its current market capitalization, Palmer says. That should support the company’s rating.
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