While many Bitcoin mining companies are struggling to weather the downturn and halving, one name has unexpectedly been highlighted by Wall Street experts with the potential to increase fivefold – that is Canaan, the famous coin mining equipment manufacturer.
✅ Benchmark upgrades to 'strong buy' for Canaan (CAN)
Investment bank Benchmark has officially upgraded the stock of Canaan (CAN) to 'buy', with a target price of $3 per share, equivalent to a 5-fold increase compared to the current price of only $0.60.
Analyst Mark Palmer stated:
"We believe that CAN stock is currently undervalued. Expansion into the North American market, along with the potential price increase of Bitcoin, will be the driving force for this stock to surge."
✅ Why is Canaan still valuable despite the difficulties in the mining industry?
While giants like MARA Holdings are downgraded due to reduced mining speed, Canaan is going against the tide thanks to its smart business strategy:
Diversifying revenue streams: Canaan not only produces ASIC chips but is also expanding into the personal mining machine sector for home users – a new market full of potential.
Growth in North America: Instead of relying solely on the Asian market, the company is expanding its presence in the U.S., which has significant growth potential and competitive electricity prices.
Self-operating mining: Canaan has been and is enhancing its Bitcoin self-mining sector, utilizing its own equipment to optimize revenue.
✅ Long-term opportunities with the mining machine industry?
Although the mining market is facing significant pressure after the halving (reducing the reward from 6.25 BTC to 3.125), companies with strong technology and a well-directed expansion strategy like Canaan are expected to withstand and benefit greatly when Bitcoin recovers.
In the long term, the trend of financial decentralization and the demand for digital asset security are driving the mining market to recover, especially as many individuals and organizations want to self-manage their revenue sources.
✅ Relating to the crypto market and Binance users
The potential recovery of companies like Canaan shows that long-term confidence in Bitcoin and Web3 infrastructure remains intact. For Binance users, this is a strong reminder that the crypto market is not just about coin prices, but the entire technology and financial ecosystem that is continuously expanding.
🔔 The crypto market always carries high risks. All investment decisions should be based on thorough research and appropriate capital management strategies. Crypto is not suitable for everyone.