Bitcoin News Today: Canaan Swells Bitcoin Holdings, Mining Output as Q3 Revenue Jumps 104%

Canaan Inc. (NASDAQ: CAN), a major player in the cryptocurrency and blockchain space, has made significant strides in its Bitcoin (BTC) holdings during November 2025, expanding its reserve by 100 BTC to bring the total holdings to 1730 BTC. The firm also reported an additional 89 BTC mined in the same month, reflecting continued growth in its mining operations. This growth underscores the company's strategic focus on Bitcoin production and its broader efforts to strengthen its cryptocurrency treasury.

The expansion in Bitcoin holdings and mining output was supported by a strong operational performance. As of the end of November 2025, Canaan's month-end deployed hashrate stood at 9.41 EH/s, while its operating hashrate reached 8.12 EH/s. These figures indicate an efficient use of the company's computing power and a growing capacity to mine BTC, even amid a challenging macroeconomic environment.

In tandem with the increase in Bitcoin holdings, Canaan reported a robust revenue performance for Q3 2025. The firm's revenue for the quarter reached $150.48 million, representing a 104% year-over-year growth and exceeding expectations of $129.95 million. Mining revenue surged by 241% YoY to $30.55 million, while product revenue totaled $118.6 million. The company also achieved a positive adjusted EBITDA of $2.8 million and increased its cash balance by 80.9% to $119 million.

Canaan's CEO, Nangeng Zhang, has emphasized the firm's commitment to innovation, particularly in the AI and data center sectors. He highlighted the potential for AI software and data centers to reshape daily life in the near future. This forward-looking strategy aligns with Canaan's recent exploration of AI-ready mining facilities and its focus on the A16 series shipments for Q4 2025.

Canaan's financial strength and strategic direction have drawn the attention of analysts. The firm has received a "Strong Buy" consensus rating from six analysts, with a 12-month average price target of $2.89, suggesting a potential upside of more than 200% from its current trading price of $0.9367. Several major firms, including BTIG and B.Riley, have reiterated or initiated buy ratings with varying price targets, reflecting optimism about the company's growth prospects.

The company's strategic equity investments and share repurchase programs further support its long-term value proposition. In November, Canaan secured a $72 million strategic equity investment and executed an active $30 million share-repurchase program. Approximately 6.59 million ADS were repurchased for $4.9 million, signaling confidence in the company's intrinsic value and future performance according to the company's filings.

Market Performance and Analyst Outlook

Canaan's stock has shown notable volatility in recent months, with a sharp one-month share price return of -21.29%. However, the company has recovered somewhat from a low point, with a 3-month share price return of 32.85%. Despite this, the firm's one-year total shareholder return of -68.67% suggests a challenging long-term outlook. Analysts remain divided on the valuation, with some arguing that the stock is deeply undervalued while others point to the company's elevated price-to-sales ratio as a cautionary sign.

The popular narrative among analysts is that Canaan is undervalued, with a fair value estimate of $2.89 per share. This narrative is based on optimistic assumptions about the company's growth potential, particularly in the context of the broader tech and AI sectors. However, the valuation also carries risks, especially in the event of continued Bitcoin price weakness or a shift in demand away from traditional mining hardware.

Risks to the Outlook

Despite the positive earnings and operational results, Canaan faces several headwinds. The Bitcoin network difficulty has increased, which could impact mining efficiency and profitability. Additionally, the firm's exposure to cryptocurrency prices introduces a level of uncertainty, particularly in a volatile market environment. Canaan's global installed power capacity of 234.8 MW, with North America accounting for 91.2 MW, highlights its reliance on efficient power sourcing, which is currently at an average of $0.043/kWh.

The company also announced that it expects an additional 1 EH/s of capacity to come online by the end of the year, which may help offset some of these challenges. However, if macroeconomic conditions deteriorate further or the demand for Bitcoin-related hardware declines, Canaan could face margin pressures and operational constraints.

What This Means for Investors

For investors, Canaan's performance and strategic direction present both opportunities and risks. The company's expansion in Bitcoin holdings and mining output, combined with its strong Q3 revenue and cash position, suggest a solid foundation for growth. The CEO's emphasis on AI and data centers could also open new revenue streams and diversify the firm's business model.

However, the stock's recent volatility and the broader challenges in the cryptocurrency sector mean that investors should approach with caution. While some analysts believe the stock is undervalued and offer attractive upside potential, others point to the company's valuation multiples as a sign of over-optimism. As Canaan moves into Q4 2025 with a revenue guidance of $175–205 million, its ability to execute on its strategic goals and navigate macroeconomic risks will be closely watched.