The builders of Singapore-based Bitcoin Mining ASIC Chips and Rig Canan (CAN) have a troublesome run, however might be a five-bager, suggesting benchmark analyst Mark Palmer.
Palmer on Tuesday started overlaying ADRs with a purchase order ranking and a $3 value goal. The shares closed at $0.62 yesterday, decreasing 72% per yr.
Canaan’s twin technique focuses on the event of ASIC Bitcoin chips and rigs, notably on increasing self-recruitment work within the US, Palmer mentioned.
“Can’s vertically built-in strategy will distinguish it throughout the Bitcoin mining house and place it to reap the benefits of each chip/rig gross sales and distinctive mining income,” he writes.
He famous that the push to Canaan’s house mining rig diversified the corporate’s revenues.
Tools producers are additionally increasing their capacity to self-recruit themselves within the US and worldwide.
“The corporate has derived 16.3% of its revenues in 2024 from its self-recruitment enterprise, but it surely intends to extend the entire laptop energy 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 present worth of round $133 million or almost 70% of its present market capitalization, Palmer says. That ought to assist the corporate’s ranking.
learn extra: Bitcoin miners with HPC publicity didn’t carry out BTC for 3 months: jpmorgan
