BTIG initiates Canaan stock with Buy rating, citing vertically integrated Bitcoin mining strategy

Investing.com - BTIG initiated coverage on Canaan Inc. (NASDAQ:CAN) with a Buy rating and a price target of $3.00, highlighting the company’s vertically integrated Bitcoin mining operations. This target represents significant upside from the current price of $0.93, aligning with the broader analyst consensus that’s notably bullish. InvestingPro data indicates Canaan is currently undervalued based on its Fair Value assessment.

Canaan has been manufacturing ASIC mining rigs since 2013, with its current A16 model ranking among the most efficient in the market at approximately 12.8 J/TH, compared to the industry average of around 13 J/TH, according to BTIG.

The company maintains a dual business model, selling mining equipment to third-party operators globally while also operating its own mining fleet of approximately 9 EH distributed across eight third-party data centers in both U.S. and international locations. Despite impressive revenue growth of nearly 84% in the last twelve months, InvestingPro analysis shows Canaan struggles with weak gross profit margins of just 4.8% and is not currently profitable.

Canaan currently holds approximately 1,600 Bitcoin (valued at about $145 million) and 4,000 Ethereum (worth approximately $12 million), though its near-term strategy focuses primarily on expanding Bitcoin self-mining capacity and increasing its market share in rig manufacturing, which currently stands at 13%-15% globally.

The company has expanded its manufacturing footprint by establishing a Bitcoin rig production facility in California during the third quarter of 2025, diversifying its production capabilities beyond its original locations.

In other recent news, Canaan Inc. reported its third-quarter 2025 earnings, showcasing a significant revenue achievement. The company recorded revenue of $150.48 million, exceeding expectations of $129.95 million, which marked a 15.8% surprise. However, the earnings per share (EPS) fell short, coming in at -$0.36 compared to the anticipated -$0.01. Despite the EPS miss, the impressive revenue figures contributed to a positive response in the market. Benchmark, an analyst firm, reiterated its Buy rating on Canaan, maintaining a price target of $4.00. This decision reflects confidence in the company’s performance, particularly in its bitcoin mining equipment sector. These developments highlight Canaan’s operational efficiencies and market position.

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