Canaan Stock Surges on Analyst Backing and Strong Operational Performance

Canaan Inc. shares carried significant upward momentum into the new trading week, building on an impressive 16% rally from the previous week. The stock continues to demonstrate robust buyer interest, driven by several key developments.

Strategic Alliance and Mining Hardware Demand

A pivotal development fueling investor confidence is Canaan’s recently announced strategic partnership with Luxor Technology Corporation, unveiled on September 8th. This collaboration focuses on providing flexible financing solutions for the acquisition of Avalon® mining equipment.

The partnership has already yielded substantial results, facilitating the sale of more than 5,000 Avalon® A15 Pro Bitcoin mining machines to a major institutional mining operation in the United States during August alone.

Analyst Confidence and Management Engagement

Market sentiment received a significant boost on Friday when two prominent research firms reaffirmed their positive outlooks. Rosenblatt Securities maintained its “Buy” rating with a $4.00 price target, while Benchmark confirmed its own buy recommendation with a $2.00 target price.

These endorsements followed a meeting between Benchmark analyst Mark Palmer and Canaan’s executive leadership, including Chief Financial Officer James Cheng and Capital Markets Head Leo Wang. Discussions highlighted the company’s strategic initiatives aimed at driving commercial, operational, and financial recovery.

Should investors sell immediately? Or is it worth buying Canaan?

Operational Excellence and August Performance

Canaan’s preliminary operational metrics for August 2025 provided additional positive indicators:

• Bitcoin mining output: 98 BTC (representing a 10% increase over July)
• Deployed hashrate: 8.6 exahashes per second (EH/s)
• Bitcoin holdings: 1,547 BTC (as of August 31, 2025)

Notably, the company’s North American operations achieved a landmark efficiency rating of below 20 joules per terahash (J/TH), demonstrating clear technological advancement in the competitive mining sector.

Strong Financial Foundation

The current positive developments build upon already solid quarterly results. For Q2 2025, Canaan reported revenue of $100.2 million, exceeding its own guidance of $96.6 million. The company also delivered non-GAAP EBITDA of $25.3 million during the same period.

Market participants are now watching to see if Canaan can maintain this operational momentum into the third quarter, with Q3 2025 results anticipated to be released on November 19th.