BTIG Highlights Canaans U.S. Mining Expansion and Its Impact on Investment Strategy

BTIG's Focus on Canaan's U.S. Mining Rigs Could Change Investment Reasons

Recently, BTIG initiated coverage on Canaan Inc., highlighting the company's vertically integrated Bitcoin mining model and its expansion into U.S. rig manufacturing set for 2025. This renewed analyst attention emphasizes how Canaan's combination of global miner sales and its own data center fleet could reshape its role in the Bitcoin mining value chain.

The report indicates that to invest in Canaan, one must believe that a vertically integrated Bitcoin miner and hardware supplier can transform the volatile, cyclical demand into more predictable growth. While BTIG's coverage sharpens Canaan's profile, it does not significantly alter the short-term focus on improving profitability and managing the substantial risks associated with Bitcoin price fluctuations and cyclical hardware demand.

"The new reporting from BTIG sharpens the profile of Canaan, but does not fundamentally change the short-term focus on improving profitability." - Simply Wall St

Among the recent updates, Canaan's results for the third quarter of 2025 and the revenue forecast for the fourth quarter, estimated between $175 million and $205 million, stand out as they align with the timing of the California facility becoming operational. These forecasts and the new production base provide investors with a clearer, short-term view of how the company aligns its capital-intensive expansion with ongoing losses.

However, investors must still weigh the risk that a shift towards AI and HPC could quietly reduce the long-term demand for Bitcoin mining rigs.

Financial Projections and Market Sentiment

Canaan's report forecasts a revenue of $1.2 billion and a profit of $83.1 million by 2028. This projection leads to a fair value estimate of $2.89 per share, indicating an upside potential of 210% from the current price. The Simply Wall St community has provided thirteen fair value estimates ranging from $1.29 to $24.26 per share, showcasing the varied perspectives among investors regarding Canaan's potential.

The key question many investors face is whether Canaan's vertically integrated mining model and new U.S. manufacturing can offset the ongoing earnings volatility associated with Bitcoin price cycles. This uncertainty highlights the diverse opinions on the stock's future performance.

In summary, Canaan's strategic moves and financial forecasts present a compelling narrative for potential investors, but the inherent risks associated with the cryptocurrency market remain a significant consideration.

Sources:

• BTIGs Fokus auf Canaans U.S. Mining Rigs könnte die Gründe für eine Investition in Canaan (CAN) ändern