Should You Buy This US Penny Stock-CAN

Acrobull Canada Advisory Inc.

June 25			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
Cannan Inc.	CAN-NASDAQ	Technology		$299.004 Million	High

Canaan Inc. engages in the research and development, design, and sale of integrated circuits (IC), and lease of final mining equipment by integrating IC products for bitcoin mining and related components in the People's Republic of China.

Recent Highlights

Canaan Inc reported total revenue of $82.8 million in Q1 2025, beating its guidance of $75 million and showing a 136% increase compared to the same period last year.

The average selling price per terahertz rose to $10.5, up 30% year over year, reflecting stronger demand and improved pricing.

The company’s self-mining business also performed well, mining 259 Bitcoins in the quarter — a 39% increase compared to the previous quarter.

First Quarter 2025 Highlights

Revenue- Reported total revenue was $82.8 million, exceeding prior guidance of $75 million, This represents a 136% increase year over year (YoY), signaling robust growth driven by both mining operations and machine sales.

Gross Profit- Recorded a gross profit of $0.6 million, marking the first positive gross profit in two years, This return to gross profitability suggests improvements in cost structure, pricing, or operational leverage.

Total Operating Expenses- Operating expenses reached approximately $38 million, compared to $31 million in the same quarter last year, representing a 22.6% increase YoY.

Stock Observation- Canaan is projecting a significant ~50–80% QoQ revenue increase, while EPS is expected to narrow the loss vs. Q1. Market sentiment remains overwhelmingly positive, supported by multiple upwardly revised price targets. The RSI level for the stock is at 35 which shows oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$0.65 USD
Acrobull Recommendation	Buy at $0.60 USD
Target Price	$0.69 USD
RSI Level	14 Day RSI 37
Total Shares Outstanding	439.59 Million
Shares held by Insiders Risk Factor Stop Loss	8.73% High 5%