Finance

Canaan’s Stock Soars? Benchmark’s $4 Target Signals a Bitcoin Mining Comeback

Benchmark raised Canaan’s price target to $4 on strong demand and financial health.

byAndres Castro

October 23, 2025, 6:12 PM

A graphic depicts a stylized Bitcoin symbol being mined by a pickaxe.

The glow of digital gold illuminates the future as cryptocurrency mining reshapes the financial landscape. By MDL.

Executive Summary

Investment bank Benchmark raised its price target for Canaan to $4 from $2, driven by the company’s Nasdaq compliance, growing demand for Avalon mining rigs, and a robust balance sheet including over $186 million in crypto holdings.

Canaan recently secured its largest order in three years, comprising over 50,000 Avalon A15 Pro Bitcoin mining machines from an unnamed U.S. customer, highlighting strong demand for its efficient hardware.

Despite a nearly 19% year-to-date decline in share price and challenges in the Bitcoin mining industry, Benchmark maintains a bullish stance, viewing Canaan as an “accelerating turnaround story” with an “inexpensive stock.”

The Story So Far

The Bitcoin mining industry is grappling with reduced profitability following last year’s halving event, which cut block rewards and intensified the need for highly efficient mining hardware to maintain operations, while a broader selloff in crypto-related shares has created an attractive opportunity for investors to consider companies like Canaan, which offers competitive equipment.

Why This Matters

Benchmark’s significant price target increase for Canaan signals a strong turnaround for the Bitcoin mining machine manufacturer, driven by improved operational efficiency, Nasdaq compliance, and a robust balance sheet, positioning it as an attractive investment opportunity. This upgrade underscores the critical importance of efficient hardware in the post-halving Bitcoin mining landscape and suggests potential for substantial investor returns despite broader industry challenges.

Who Thinks What?

Benchmark equity research analyst Mark Palmer believes Canaan is an “accelerating turnaround story” with an “inexpensive stock,” raising its price target to $4 due to the company’s Nasdaq compliance, growing demand for its efficient Avalon rigs, and a robust balance sheet.

The Bitcoin mining industry, facing challenges from rising operational costs and reduced block rewards, increasingly prioritizes efficient hardware for profitability, making Canaan’s improved Avalon machines appealing to miners.

Investment bank Benchmark has significantly raised its price target for Nasdaq-listed Bitcoin mining machine manufacturer Canaan to $4, up from $2. The upgrade, announced Thursday, stems from Canaan’s recent compliance with Nasdaq’s minimum bid price requirement, growing demand for its Avalon mining rigs, and a robust balance sheet. Achieving this new target would represent an approximately 118% jump from its current trading price of $1.80 per share.

Benchmark’s Bullish Outlook

Benchmark equity research analyst Mark Palmer highlighted that Canaan recently met the Nasdaq Stock Market’s $1 minimum bid price, removing the risk of delisting. Palmer also noted the increasing popularity of Canaan’s Avalon line of Bitcoin mining rigs. He stated these machines are appealing to miners due to their improved efficiency, reliability, and cost-competitiveness.

The analyst further pointed to Canaan’s strong balance sheet, which includes 1,582 Bitcoins and 2,830 Ethereum, totaling over $186 million. This record holding was cited as another key factor supporting the increased price target. Palmer suggested that the recent broad selloff in crypto-related shares presents an attractive opportunity for investors.

Industry Context and Recent Orders

The Bitcoin mining industry has faced challenges from rising operational costs and reduced block rewards following last year’s halving event, which cut miner earnings from 6.25 BTC to 3.125 BTC per block. In this environment, efficient hardware is critical for profitability.

Earlier this month, Canaan secured its largest order in three years, comprising over 50,000 Avalon A15 Pro Bitcoin mining machines from an unnamed U.S. customer. These latest-generation machines are designed for industry-leading efficiency. In a broader industry trend, some miners are increasingly diversifying into high-performance computing for AI applications, a shift viewed positively by investors, as evidenced by Google’s backing of a deal between AI compute company Fluidstack and Bitcoin miner Cipher.

Key Takeaways

Despite a nearly 19% year-to-date decline in Canaan’s share price, Benchmark maintains a bullish stance, citing the company’s operational improvements, strong financial position, and strategic market positioning. The investment bank views Canaan as an “accelerating turnaround story” with an “inexpensive stock” at its current valuation.