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SINGAPORE - Canaan Inc. (NASDAQ:CAN) has secured a 4.5-megawatt contract to deploy its hydro-cooled Avalon A1566HA-488T mining servers for power grid balancing in Japan, the company announced Thursday. The news comes as the cryptocurrency mining equipment manufacturer’s stock trades at $1.37, having experienced significant volatility with a 22% decline over the past week despite impressive 95% gains over the last six months.
The contract, made with an unnamed electrical engineering solutions provider, will see Canaan’s servers installed at a facility operated by a major regional Japanese utility by the end of 2025. The systems will help stabilize the regional power grid through controlled overclocking and underclocking capabilities. According to InvestingPro data, analysts anticipate 70% revenue growth for Canaan this fiscal year, potentially boosting the company’s market capitalization, which currently stands at $642.5 million.
Canaan’s servers utilize the company’s self-developed smart control chip, which dynamically adjusts frequency, voltage, and hashrate through feedback algorithms to respond to grid fluctuations and maintain efficiency.
"With our Avalon hydro-cooled servers equipped with a smart control chip and Bitcoin mining technology, utilities can leverage Bitcoin mining as a digital load balancer, improving both energy sustainability and grid efficiency," said Nangeng Zhang, chairman and CEO of Canaan.
The project follows a similar initiative Canaan supported in the Netherlands last year. The company expects to expand such deployments with energy and data-center partners in 2026.
According to the press release, the implementation comes as Japan pursues broader digital-asset reforms, including proposed measures to reclassify crypto assets as financial products and introduce a flat 20% tax on crypto gains.
Canaan, established in 2013 and publicly listed on Nasdaq in 2019, specializes in ASIC high-performance computing chip design and production of computing equipment for cryptocurrency mining.
In other recent news, Canaan Inc. unveiled its latest bitcoin mining machine, the Avalon A16 series, at the Blockchain Life 2025 summit in Dubai. The new A16XP air-cooled model boasts 300 terahash per second of computing power with an energy efficiency rating of 12.8 joules per terahash. Canaan also announced a joint venture with Aurora AZ Energy Ltd. to convert flare gas from Alberta oil wells into electricity for bitcoin mining operations. This project will utilize approximately 152Ph/s of mining capacity and is expected to commence operations in early 2025.
The company has launched a pilot mining project in Calgary, Alberta, aiming to convert flared natural gas into power for computing operations. This initiative, in collaboration with Aurora AZ Energy Ltd., will involve over $2 million worth of Avalon A15 Pro miners, creating around 2.5 megawatts of computing capacity. In analyst updates, Benchmark raised its price target for Canaan to $4 while maintaining a Buy rating, following the company’s regained compliance with Nasdaq’s minimum bid requirement. H.C. Wainwright reiterated its Buy rating and $3 price target for Canaan, highlighting the new joint venture as a factor in its assessment.
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