Singapore-based developer of Bitcoin Mining Asic chips and Rigs Canaan (CAN) has had a tough race, but could be a five-bagger, Benchmark analyst Mark Palmer suggests.

Palmer on Tuesday began the coverage of ADRS with a purchase rating and a price target of $ 3. The shares closed yesterday at $ 0.62, lower by 72% years to date.

Canaan’s double strategy is focused on the development of Asic Bitcoin chips and rigs and the expansion of its self-mining, especially in the United States, Palmer said.

“Can’s vertically integrated approach differentiates it within the Bitcoin mining, while placing it to utilize both chip/rich sales and proprietary mining revenue,” he wrote.

Canaan’s push in the homemade operation has diversified the company’s revenue, he further noticed.

The equipment manufacturer also grows its self -mining in the United States and globally.

“While the company only derived 16.3% of its revenue from 2024 from its self -mining operations, it intends to increase the overall computing power that drives its self -mining operations in mid -2025 to 10 EH/S in North America and 15 EH/S globally,” Palmer added.

Canaan has a stack of 1,408 Bitcoin with a current value of about $ 133 million, or nearly 70% of its current market cap, Palmer said. It should be supportive of the company’s valuation.

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