Benchmark Is Bullish on Bitcoin Miner Maker Canaan With 5X Price Target
Benchmark upgraded Canaan's stock to a "buy" rating, setting a price target of $3, five times its current price. The firm's North American expansion strategy is expected to drive stock appreciation, aided by potential increases in Bitcoin prices. Despite a challenging year for Bitcoin mining stocks due to price drops and increased mining difficulty, Canaan's stock is viewed as undervalued. Canaan, listed on Nasdaq, trades at $0.60 and has seen a 21% decline over the past month. The company manufactures ASIC chips for Bitcoin mining and is expanding its self-mining operations and consumer market presence. Other miners, like MARA Holdings, face profitability challenges, exacerbated by last year's Bitcoin halving, which reduced mining rewards.
