NEW YORK — Shares of bitcoin mining hardware maker Canaan Inc. (NASDAQ: CAN) closed up 12.95% at $0.2712 on Thursday, following President Donald Trump's public call for Congress to pass the CLARITY Act, a landmark crypto regulatory bill. The surge came amid a broader rally in digital asset-related equities, fueled by renewed policy momentum from the White House.
Trump's endorsement, delivered on August 19, urged lawmakers to approve a “fair version” of the Digital Asset Market Clarity Act, which would split regulatory oversight between the SEC and CFTC and impose new disclosure requirements on digital asset intermediaries. The Senate has scheduled a procedural vote for September 15 at 2:15 PM EDT, a key test for the legislation's progress.
The rally highlights a growing trend: Canaan now trades more like a leveraged cryptocurrency proxy than a traditional hardware company. As of July 31, the company held 1,917 bitcoin and 3,952 ether, valued at approximately $146.1 million based on Thursday's prices. That figure represents 72.3% of Canaan's total market capitalization of $202 million, underscoring how closely the stock's fortunes are tied to crypto prices.
“The market is pricing Canaan primarily on its digital asset treasury, not its mining equipment business,” said Bo Pei, an analyst at US Tiger Securities. “Trump's comments are incrementally positive, but legislative uncertainty remains.” The company's equity value is only slightly higher than its reported crypto holdings, meaning that operational performance, liabilities, and listing risks will determine whether the current discount is justified.
In July, Canaan produced 46 bitcoin, with a global hashrate of 14.24 exahashes per second and an average electricity cost of $0.043 per kilowatt-hour. CEO Nangeng Zhang described the month as one of “continued operational discipline” amid changing mining conditions. The company has authorized the sale of a portion of its digital assets to fund share buybacks, creating a feedback loop: higher bitcoin prices boost treasury value, while lower share prices make buybacks more attractive.
Analyst coverage remains limited but optimistic. The consensus rating is “Strong Buy,” with five of six analysts recommending buy, and an average price target of $1.72 — more than six times Thursday's close. Targets range from $0.90 to $3.00, reflecting both upside potential and the volatility of a sub-$1 stock. Notable ratings include BTIG's Gregory Lewis (Buy, $3.00), Rosenblatt's Kevin Cassidy (Buy, $1.30), and H.C. Wainwright's Kevin Dede (Buy, $1.50).
However, risks remain significant. A retreat in bitcoin prices could reduce both treasury value and mining profitability. Canaan also faces a Nasdaq minimum price requirement: it must maintain a closing price of at least $1 for ten consecutive business days by January 11, 2027, or risk delisting. A reverse stock split or further dilution could erode the perceived asset discount.
Investors will get fresh insight on August 25, when Canaan reports second-quarter earnings. The company's first-quarter revenue was $62.7 million, down sharply from the prior quarter due to the completion of a major hardware order, though mining income reached $19.1 million. The Senate vote on September 15 will be the next major catalyst for the stock and the broader crypto market.
