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Canaan (CAN)
NASDAQ:CAN
US Market
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Canaan (CAN) AI Stock Analysis

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CAN

Canaan

(NASDAQ:CAN)

Rating:51Neutral
Price Target:
$1.00
▲(19.05%Upside)
Canaan's overall stock score is driven by significant financial challenges, including losses and negative cash flows. While technical indicators suggest short-term positive momentum, long-term trends remain bearish. The earnings call provided some optimism with strong revenue growth and successful product launches, but the strategic withdrawal of guidance due to external challenges adds uncertainty.
Positive Factors
Bitcoin Holdings
Canaan Inc. holds 1,424 bitcoins with a market value of $149 million and a net cash position of $76 million, which combined is greater than its current market capitalization.
Executive Confidence
Both the CEO and CFO acquired an aggregate of 817,268 ADSs, showing their confidence in Canaan's long-term prospects.
Stock Buyback
The company's board of directors has approved a $30 million stock buyback program, which could support the share price.
Negative Factors
Market Uncertainty
Canaan Inc. faces uncertainty due to U.S. tariffs impacting demand for its bitcoin mining equipment and a Nasdaq delisting notice for trading below $1.00.
Nasdaq Delisting Risk
Canaan Inc. received a delisting notice from Nasdaq after its stock traded below $1.00 for 30 consecutive business days.
U.S. Tariffs Impact
The imposition of tariffs by the U.S. government impacted CAN’s customer order flow and self-mining deployments, with demand for its bitcoin mining rigs from North American customers remaining under pressure.

Canaan (CAN) vs. SPDR S&P 500 ETF (SPY)

Canaan Business Overview & Revenue Model

Company DescriptionCanaan Inc., founded in 2013 and headquartered in China, is a technology company primarily engaged in the design and development of high-performance computing solutions. The company is recognized as a leading provider of blockchain technology and artificial intelligence (AI) services. Canaan's core products include ASIC-based high-performance computing hardware for cryptocurrency mining, such as Bitcoin, and AI chips designed for various machine learning applications.
How the Company Makes MoneyCanaan Inc. generates revenue primarily through the sale of its proprietary ASIC (Application-Specific Integrated Circuit) mining hardware, which is widely used in the cryptocurrency mining industry, particularly for Bitcoin. These mining machines are sold to individual miners, mining pools, and large-scale mining operations. Additionally, the company has expanded into the AI sector, offering AI chips and systems designed for smart devices and data centers. Canaan's earnings are significantly influenced by the demand for cryptocurrency mining equipment, which is in turn affected by the price of cryptocurrencies and advancements in mining technologies. Strategic partnerships and collaborations with other technology firms also contribute to its revenue streams, enhancing its market reach and product offerings.

Canaan Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q1-2025)
|
% Change Since: 2.44%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong revenue growth and successful product launches, particularly in non-US markets. However, significant challenges were noted due to tariff impacts and bitcoin price volatility, leading to strategic caution and withdrawal of full-year guidance.
Q1-2025 Updates
Positive Updates
Record Revenue Growth
Total revenues for Q1 2025 reached $82.8 million, surpassing the previous guidance of $75 million, marking a 136% year-over-year increase.
Strong Performance in Mining Operations
The self-mining business delivered 259 bitcoins, up 39% quarter-over-quarter, with mining revenue reaching over $24 million, a 59% sequential increase.
Successful Launch and Sales of A15 Series
The A15 series contributed significantly to sales, achieving 5.5 exahash per second in total computing power sold, up 62.6% year-over-year.
Negative Updates
Impact of Tariffs on US Market
US tariffs on imports, including a 10% universal tariff, have led to higher mining costs and decreased demand for mining machines in the US.
Volatility in Bitcoin Prices
Bitcoin prices fluctuated significantly, dropping from $104,000 to $76,000, before rebounding to around $85,000, affecting miners' profit margins.
Withdrawal of Full-Year Revenue Guidance
Due to ongoing global political and economic volatility, the company has withdrawn its previously issued full-year revenue guidance.
Company Guidance
During the first quarter of 2025, Canaan Inc. faced significant challenges due to macroeconomic factors, including rising tariffs and volatile bitcoin prices. Despite these hurdles, the company reported revenues of $82.8 million, surpassing their guidance of $75 million and marking a 136% year-over-year increase. Their self-mining business produced 259 bitcoins, contributing to a mining revenue of over $24 million, a 59% sequential increase, supported by a competitive electricity cost of $4.2 per kilowatt hour. The average selling price per terahash rose by 30% sequentially to $10.5, driven by the high performance A15 series, which accounted for $45 million of the mining machine sales and 3.9 million terahash per second in computing power sold. However, due to the ongoing tariff uncertainty, Canaan withdrew its full-year revenue guidance and hash rate deployment targets, projecting a cautious revenue of $100 million for Q2 2025.

Canaan Financial Statement Overview

Summary
Canaan faces significant financial challenges, with consistent losses, negative cash flows, and declining revenues. Despite a manageable debt load, negative profit margins and cash flow trends highlight operational inefficiencies.
Income Statement
25
Negative
Canaan has experienced significant revenue fluctuations over the years, marked by a decline from 2019 to 2023. The gross profit margin has consistently been negative, indicating challenges in covering production costs. The net profit margin is also negative, reflecting ongoing losses. Despite a brief positive turn in 2021, recent years have shown negative EBIT and EBITDA margins, highlighting persistent operational inefficiencies.
Balance Sheet
40
Negative
The company's debt-to-equity ratio remains relatively low, suggesting manageable leverage levels. However, the equity ratio has decreased over recent years, indicating shrinking equity relative to assets. Return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. Despite these challenges, the balance sheet shows some liquidity strength with cash reserves.
Cash Flow
30
Negative
Canaan's cash flow analysis reveals negative trends in operating and free cash flow, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is negative, consistent with the company's net losses. While financing activities have provided liquidity, the negative growth in free cash flow raises concerns about long-term sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue269.32M211.48M656.32M771.14M68.58M
Gross Profit-84.32M-240.78M231.98M440.83M5.79M
EBITDA-143.33M-330.11M84.51M285.16M-34.11M
Net Income-249.75M-414.15M70.40M308.44M-32.95M
Balance Sheet
Total Assets463.01M493.30M690.00M884.74M158.76M
Cash, Cash Equivalents and Short-Term Investments96.49M96.15M105.65M421.67M69.50M
Total Debt94.99M1.43M1.45M2.56M5.83M
Total Liabilities196.76M145.11M77.86M341.44M92.50M
Stockholders Equity266.25M348.19M612.13M543.31M66.26M
Cash Flow
Free Cash Flow-218.57M-126.93M-201.82M196.23M6.15M
Operating Cash Flow-199.26M-123.62M-183.94M201.86M6.48M
Investing Cash Flow60.97M39.63M846.22K
Financing Cash Flow139.75M90.00M-56.59M138.93M-17.15M

Canaan Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.84
Price Trends
50DMA
0.71
Positive
100DMA
0.79
Positive
200DMA
1.29
Negative
Market Momentum
MACD
0.05
Positive
RSI
51.88
Neutral
STOCH
23.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CAN, the sentiment is Neutral. The current price of 0.84 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.71, and below the 200-day MA of 1.29, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 23.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CAN.

Canaan Risk Analysis

Canaan disclosed 91 risk factors in its most recent earnings report. Canaan reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Canaan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$34.70B5.15-11.38%1.67%5.54%-17.15%
56
Neutral
$330.27M-9.62%7.35%16.59%
51
Neutral
$258.02M-90.43%65.68%50.28%
43
Neutral
$256.46M-99.85%-8.09%22.06%
41
Neutral
$57.96M33.98%-17.08%-223.70%
41
Neutral
$32.12M-7.51%20.88%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAN
Canaan
0.80
-0.26
-24.53%
DDD
3D Systems
1.80
-2.00
-52.63%
QMCO
Quantum
8.88
0.88
11.00%
NNDM
Nano Dimension
1.48
-0.98
-39.84%
EBON
Ebang International Holdings
4.51
-1.55
-25.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025