TLDR
- Benchmark doubled Canaan’s price target from $2 to $4 and maintained its buy rating after the company regained Nasdaq compliance with listing requirements.
- Canaan secured its largest U.S. order in three years with over 50,000 Avalon A15 Pro mining rigs being shipped in Q4 2024.
- The company’s self-mining operations reached 9.3 EH/s of deployed capacity in September with competitive power costs at $0.042 per kWh.
- Canaan mined 92 bitcoins in September and holds 1,582 BTC and 2,830 ETH in its digital asset treasury.
- Shares jumped 5% in early trading Thursday to around $1.79 following the analyst upgrade.
Wall Street has turned its attention back to Canaan. Benchmark raised the mining rig maker’s price target from $2 to $4 while keeping its buy rating intact.
The stock responded well. Shares climbed 5% in early Thursday trading to around $1.79.
The catalyst? Nasdaq confirmed last week that Canaan met its minimum bid requirement. The company’s stock closed at or above $1.00 for 10 straight business days.
That compliance issue had been hanging over the stock for months. Benchmark analyst Mark Palmer said it dampened liquidity and kept some institutional investors on the sidelines.
With that problem solved, investors can look at what’s actually happening with the business. And the numbers tell a different story than they did earlier this year.
Canaan just landed its biggest U.S. order in three years. More than 50,000 Avalon A15 Pro mining rigs will ship in the fourth quarter.
That’s real market share coming back. The Avalon line is gaining traction again after a rough patch.
CleanSpark picked up follow-on orders of Canaan’s immersion-optimized A1566I rigs. The compact Avalon Q could open up consumer mining down the road, though that’s still early stage.
Self-Mining Operations Take Shape
The company isn’t just selling equipment anymore. Canaan’s September update showed 9.3 exahashes per second of deployed capacity for its own mining operations.
The company mined 92 bitcoins that month. Its digital asset holdings stand at 1,582 BTC and 2,830 ETH.
Power costs matter in this business. Canaan’s average comes in at $0.042 per kilowatt hour.
That’s one of the lowest rates in the industry. Better energy deals and smarter site selection should push that number even lower.
The company launched a pilot project in Calgary converting flared natural gas into power for mining. That joint venture with Aurora AZ Energy should start operations in early 2025.
Mining Equipment Orders Accelerate
The September operational metrics show the mining side ramping up. Of the 9.3 EH/s deployed, 7.84 EH/s was actually running by month’s end.
H.C. Wainwright maintains its buy rating with a $3 price target. That firm pointed to the flare gas venture as another revenue stream.
Palmer called the recent stock weakness an attractive entry point. The compliance overhang is gone and the shipment schedule looks solid for Q4.
The 50,000-unit order represents a turning point. Canaan hasn’t seen U.S. demand like this since 2021.
Benchmark expects the combination of equipment sales and self-mining to drive further gains. The stock has surged 102% over the past six months according to market data.
Canaan’s deployed hashrate reached 9.30 EH/s with operations continuing to scale through the fall months.
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