Benchmark Rating “Buy” on Bitcoin Mining Producer with 5X Higher Price Target

Jakarta, Pintu News – Investment bank Benchmark gave a “buy” rating to Bitcoin mining hardware manufacturer Canaan in an analyst note on Tuesday, projecting a significant price surge.

Canaan Focuses on Diversification and Expansion in North America

Benchmark equity analyst Mark Palmer explains that Canaan’s expansion strategy in the North American market will boost its share price. He set the company’s share price target at $3, which is five times higher than the current price. Canaan (CAN), which is listed on Nasdaq, is known as a manufacturer of ASIC chips used to mine Bitcoin (BTC), the largest cryptocurrency by market capitalization.

Although the company’s shares are down 21% in the past month, Palmer believes that Canaan’s diversification of revenue streams will improve its future prospects. In addition, Palmer highlighted that Canaan’s efforts to introduce mining rigs for the consumer market could also boost revenue. By expanding into the consumer market, Canaan is not only relying on large industrial mining, but also opening up new opportunities in a broader market.

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Challenges in the Bitcoin Mining Industry

Despite the positive projections for Canaan, the Bitcoin mining industry faces several challenges. Fluctuating Bitcoin prices, increased difficulty in mining new coins, and reduced rewards after last year’s halving have left many mining companies struggling.

After the halving in 2024, the amount of Bitcoin earned to verify a transaction drops from 6.25 BTC to 3.125 BTC. Despite the rising price of Bitcoin, mining companies are finding it increasingly difficult to maintain profits due to high energy costs and expensive hardware.

Canaan, based in Singapore, is known for manufacturing ASIC chips that are crucial to the Bitcoin mining process. The company is also expanding its own mining operations to increase supply and efficiency.

Canaan’s Future Prospects in a Difficult Industry

With a projected five-fold increase in share price, Benchmark is optimistic about Canaan’s future despite the huge challenges in the Bitcoin mining sector. The sector requires large infrastructure and energy costs, which is often a major obstacle for many companies. However, with Canaan’s diversification and expansion strategy, the company is expected to survive and even thrive despite the huge challenges ahead.

Conclusion

Canaan seeks to strengthen its position in the Bitcoin mining market with product diversification and geographical expansion. With favorable projections, the company remains an attractive option for investors who believe in the long-term growth potential of the crypto market. Although the Bitcoin mining industry still faces some challenges, Canaan’s strategy could bring a breath of fresh air to its future.

Also Read: New Hampshire Becomes a Pioneer, Officially Keeping Bitcoin as a Reserve!

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Reference:

• BeInCrypto.“Benchmark Is Bullish on Bitcoin Miner Maker Canaan With 5X Price Target.” Accessed May 7, 2025.
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