Canaan Stock Soars 11.67% on Benchmark Upgrade

Canaan's stock surged 11.67% in pre-market trading on May 7, 2025, marking a significant rise in investor interest.

Benchmark, an investment bank, has upgraded Canaan's stock to a "buy" rating, citing the company's strategy to expand into North America and diversify its revenue streams. The bank set a price target of $3, which is five times the current price. This move comes despite the challenges faced by Bitcoin mining companies this year, including a drop in Bitcoin's price and increased mining difficulty.

Canaan's efforts to expand into consumer markets, particularly with home mining rigs, have been noted as a positive development. The company's self-mining operations and the potential for Bitcoin's price to rise further are seen as potential tailwinds for the stock's appreciation.