Canaan’s Recovery Accelerates as Benchmark Doubles Price Target to $4

Canaan (CAN), the crypto mining hardware manufacturer, is entering a stronger growth phase, according to Wall Street brokerage Benchmark, which doubled its price target on the company’s American depositary receipts (ADRs) to $4 from $2 and reaffirmed its Buy rating.

Shares of Canaan rose nearly 5% in early Thursday trading, hovering around $1.79.

Benchmark analyst Mark Palmer said Canaan’s investment case has improved now that the company has regained compliance with Nasdaq listing requirements, a key milestone that removes a significant liquidity and sentiment overhang.

With regulatory uncertainty behind it, Palmer said the focus can now shift back to fundamentals — including renewed demand for Canaan’s Avalon mining rigs and growth in its self-mining operations.

He highlighted Canaan’s recent U.S. order for more than 50,000 Avalon A15 Pro units — its largest in three years — as evidence the company is regaining market share in the competitive mining hardware sector.

Palmer also noted repeat orders for the firm’s immersion-optimized A1566I rigs from CleanSpark (CLSK) and cited the upcoming Avalon Q as a potential entrant into the consumer mining segment.

On the mining front, Canaan reported 9.3 exahashes per second (EH/s) of deployed capacity in September, with 92 bitcoins mined during the month and digital asset holdings of roughly 1,582 BTC and 2,830 ETH.

Benchmark said the company’s average power cost of $0.042 per kWh remains among the lowest in the industry — a key competitive advantage that could improve further with enhanced energy aggregation and optimized site selection.

With the Nasdaq compliance issue resolved, large-scale Avalon A15 Pro shipments due in Q4, and a low-cost mining footprint expanding, Benchmark believes Canaan is well positioned for continued share price appreciation.

The report also framed the stock’s recent weakness as a buying opportunity for investors seeking exposure to the next phase of crypto mining infrastructure growth.