Exploring Canaan Inc. (CAN) Investor Profile: Who’s Buying and Why?

Are you defintely wondering why major institutions are wading into Canaan Inc. (CAN), a stock where retail investors still hold the lion's share, representing around 98.69% of the ownership? You should be asking what they see that the broader market might be missing, especially when the stock is trading near its 2025 lows. The answer lies in the company's recent operational pivot: Canaan's unaudited Third Quarter 2025 financial results, reported in November 2025, showed total revenues surging to $150.5 million, a massive 104.4% year-over-year jump, with mining revenue alone hitting a record $30.6 million, up 241.0%. This dramatic turnaround from prior-year losses, yielding a gross profit of $16.6 million, is what caught the eye of heavy hitters like Invesco Ltd., whose holdings were recently valued at up to $10.49 million, and Charles Schwab Investment Management Inc. So, is the institutional buy-in a signal of a sustainable recovery in the crypto-mining sector, or just a tactical, short-term bet on the company's growing cryptocurrency treasury, which climbed to 1,610 BTC and 3,950 ETH by October-end 2025? Let's break down the investor landscape and map out the near-term risks and opportunities driving this institutional interest.

Who Invests in Canaan Inc. (CAN) and Why?

You're looking at Canaan Inc. (CAN) and trying to figure out who is actually buying this stock and what their endgame is. The short answer is: a mix of highly patient institutional capital and a large, volatile retail base, all chasing the high-beta leverage of the Bitcoin mining equipment cycle and the company's strategic pivot to operational efficiency.

As a seasoned analyst, I can tell you the investor profile for Canaan Inc. is typical for a high-growth, high-volatility sector like cryptocurrency infrastructure. It's a stock where the retail crowd still holds the majority of the float, but institutional money is moving in strategically, especially after the company's recent operational improvements.

Key Investor Types: Retail Dominance Meets Institutional Inflow

The ownership structure of Canaan Inc. (CAN) shows a clear split. The stock is overwhelmingly held by individual investors and public companies, a group that collectively owns approximately 86.84% of the shares. This high retail ownership often contributes to the stock's significant daily volatility; retail investors are typically more reactive to short-term crypto price swings and news headlines.

Still, institutional investors-the mutual funds, pension funds, and investment banks-are not sitting on the sidelines. As of the 2025 fiscal year, institutional ownership is around 15.68% of the total shares outstanding. This group includes significant players like Vanguard Group Inc., Charles Schwab Investment Management, Inc., and hedge funds such as Marshall Wace LLP.

Here's a quick look at the major institutional holders' stakes, reflecting filings up to late 2025:

• Vanguard Group Inc.: Held over 17.96 million shares.
• Charles Schwab Investment Management, Inc.: Held approximately 9.88 million shares.
• Geode Capital Management, LLC: Held over 3.77 million shares.

The recent $72 million strategic investment from institutional investors, including Brevan Howard Asset Management and Galaxy Digital Holdings Ltd., in late 2025, is a clear signal of growing confidence from sophisticated capital. That's a big vote of confidence in their long-term vision.

Investment Motivations: Chasing Growth and Operational Efficiency

What's attracting these diverse investors to Canaan Inc.? It boils down to three core drivers: exposure to the Bitcoin ecosystem, a strategic focus on core competency, and a clear path to improved profitability metrics, which you can read more about in Canaan Inc. (CAN): History, Ownership, Mission, How It Works & Makes Money.

The primary motivation is the company's dual role as a manufacturer of high-performance Bitcoin mining hardware (ASIC chips) and a self-miner. This gives investors a leveraged play on the price of Bitcoin. In Q3 2025 alone, the company's total revenue surged to $150.5 million, a 104% year-over-year increase, driven by strong product sales and a 241% jump in mining revenue to $30.6 million.

Key motivations for the institutional money include:

• Operational Turnaround: The pivot to vertical integration and a focus on core mining operations has significantly improved margins. Gross profit in Q3 2025 hit $16.6 million, a dramatic recovery from a $21.5 million loss in the same quarter of 2024.
• Strategic Assets: The company's Bitcoin treasury is a key asset, holding 1,645.2 BTC as of September 30, 2025. This acts as a hedge and a long-term value accumulator.
• Market Position: A single client placing an order for over 50,000 of the Avalon A15 Pro mining machines in late 2025 underscores the strength of their product line and their growing presence in the critical North American market.

Investment Strategies: Long-Term Value vs. Short-Term Volatility

The strategies employed by Canaan Inc. investors are as varied as the investor base itself. You see a distinct split between long-term holding and aggressive short-term trading.

Long-Term Holding and Value Investing: This strategy is favored by the institutional investors and patient individual investors. They are betting on the company's strategic roadmap: vertical integration, R&D for the next-generation Avalon A16 series, and North American expansion. They see the stock as potentially undervalued, especially given the company's positive adjusted EBITDA of $2.8 million in Q3 2025, signaling improved operational efficiency despite the capital-intensive nature of the business. They are looking for the stock to reflect the analyst-upgraded price targets, some of which are as high as $3.00 to $4.00.

Short-Term Trading: The high retail ownership and the stock's sensitivity to Bitcoin price movements and large order announcements make it a prime target for short-term traders. The stock can move dramatically in a single day-a 27% spike in October 2025 on the news of a large machine order is defintely a magnet for momentum players. These traders focus on technical analysis, watching support and resistance levels, aiming to profit from the stock's high-beta exposure to the crypto market cycle.

Here's the quick math: if Bitcoin moves 5%, a high-beta stock like CAN can easily move 15% or more, which is exactly what short-term traders want.

Next Step: Review the Q4 2025 revenue guidance of $175 million to $205 million against the company's actual performance to gauge if the operational turnaround is accelerating, which will be the next major catalyst for both value and growth investors.

Institutional Ownership and Major Shareholders of Canaan Inc. (CAN)

You want to know who is buying Canaan Inc. (CAN) and why, especially with the crypto market's volatility. The short answer is that while retail investors hold the vast majority of shares, a few top-tier institutional players have recently made a significant, targeted bet on the company's strategic pivot to North American expansion, injecting $72 million in fresh capital in November 2025.

The ownership structure of Canaan is unusual for a publicly traded company on the Nasdaq, with a high concentration of shares-around 98.69%-held by retail investors and a relatively small institutional float of about 1.31%. This means the stock price can be highly sensitive to shifts in retail sentiment. Still, the institutional money that is involved is highly strategic and influential.

Top Institutional Investors and Their Holdings

The institutional landscape for Canaan Inc. shifted dramatically in early November 2025 with a major strategic investment. This move signals a strong institutional belief in the company's long-term strategy, particularly its focus on high-performance computing (HPC) and the Bitcoin mining ecosystem, which you can read more about in Mission Statement, Vision, & Core Values of Canaan Inc. (CAN).

The most recent and impactful institutional buyers are a trio of prominent digital-asset-focused firms that participated in a registered direct offering:

• BH Digital (a division of Brevan Howard)
• Galaxy Digital
• Weiss Asset Management

These three investors collectively purchased approximately 63.7 million American Depositary Shares (ADSs) at a price of $1.131 per ADS, amounting to an aggregate gross proceeds of $72 million. Beyond this strategic group, other established institutional names hold smaller, but still significant, positions based on recent filings:

Here's the quick math: the largest individual institutional shareholder, Invesco Ltd, holds about 0.17% of the company's shares, valued at around $10.49 million. This low percentage underscores how fragmented the overall institutional ownership is compared to the new, concentrated strategic investment.

Recent Changes in Institutional Ownership

The near-term trend is a net increase in institutional confidence, specifically from players focused on the digital asset space. The $72 million registered direct offering in November 2025 is the clearest signal of a recent stake increase, showing these investors are willing to put serious capital to work at a specific valuation. This is a clean one-liner: Institutional money is increasing its exposure to Canaan Inc.'s strategic shift.

To be fair, the company is also managing its share count. Following the renewal of its At-The-Market (ATM) equity offering program in late October 2025, Canaan sold about 4.84 million ADSs, raising gross proceeds of approximately $7.8 million. But, they also executed a share repurchase program, buying back approximately 5.1 million ADSs for about $3.4 million as of November 18, 2025. This buyback activity acts as a counter-balance to the dilution from the ATM and the strategic offering, defintely showing management's focus on capital efficiency.

Impact of Institutional Investors on Stock and Strategy

The role of these large, strategic investors goes beyond just providing capital; it validates the company's direction and provides a financial cushion. The $72 million raised from BH Digital, Galaxy Digital, and Weiss Asset Management is not just sitting in a bank account. The company has explicitly stated the proceeds are intended to fund two critical, high-return initiatives:

• Acquire and deploy North American data center sites.
• Expand Bitcoin mining machine production capacity.

This is a clear signal that the institutional money is directly tied to a geographic and operational pivot-moving into the US market and scaling up production of their Avalon mining rigs. This investment also strengthens Canaan's financial position and, crucially, reduces its reliance on future capital raises through potentially dilutive financing structures like the ATM program. When a firm like Galaxy Digital or Brevan Howard puts in $72 million, it gives other investors confidence, often reducing the stock's overall risk profile and providing a floor of support during market downturns.

Key Investors and Their Impact on Canaan Inc. (CAN)

You want to know who is buying Canaan Inc. (CAN) and why, and the short answer is that while individual investors still hold the most sway, a recent influx of institutional capital from major players is the most important near-term signal. This strategic investment is a massive vote of confidence, especially given the volatility inherent in the crypto-mining sector.

The ownership structure for Canaan Inc. is defintely unique. The general public, meaning individual retail investors, holds the largest piece of the pie at a substantial 59%. This means you and other individual shareholders collectively have significant power to influence decisions on executive pay or proposed acquisitions. Still, institutional investors-the big funds and firms-hold a sizable 29%, and their recent moves are what truly map the company's near-term trajectory.

The most crucial recent development came in early November 2025, when Canaan Inc. announced a strategic equity investment, raising aggregate gross proceeds of US$72 million. This wasn't a general public offering; it was a targeted move by influential institutional players. That's a clear action point.

• Brevan Howard Asset Management LLP: A major global hedge fund, their participation signals a belief in the long-term value of the underlying technology and the company's operational strength.
• Galaxy Digital Holdings Ltd.: An institution deeply embedded in the crypto economy, their investment is an industry-specific endorsement of Canaan Inc.'s mining hardware and strategy.
• Weiss Asset Management LLC: Another influential fund, adding a layer of professional validation to the company's valuation thesis.

When funds like these commit US$72 million in fresh capital, it doesn't just fill the treasury; it validates the business model for the rest of the market. This kind of institutional support helps stabilize the stock price and gives management the financial breathing room to execute on their growth plans, like expanding their computing power sold, which hit a record 10.0 exahashes per second (EH/s) in Q3 2025.

Mapping Investor Influence to Company Strategy

The impact of these investors is immediate and two-fold: capital infusion and strategic alignment. The US$72 million raised in November 2025 immediately bolstered the company's cash position, which was already strong at US$119.2 million as of September 30, 2025.

Here's the quick math on why this matters: Canaan Inc. just reported Q3 2025 total revenues of US$150.5 million. A US$72 million capital injection is roughly half of a quarter's revenue, giving them significant dry powder. This liquidity is critical in a capital-intensive business like ASIC chip design and crypto-mining. It allows the company to continue investing in Research and Development (R&D), which was US$16.3 million in Q3 2025, to maintain a competitive edge.

Beyond the recent strategic investment, the company's largest institutional holders, who file their positions with the Securities and Exchange Commission (SEC), include firms like The Vanguard Group, Inc. and Invesco Capital Management LLC. Their presence signals that Canaan Inc. is included in large, passive index funds and actively managed portfolios that track the technology and emerging markets sectors. For a deeper dive into the fundamentals that attract these large holders, you can check out Breaking Down Canaan Inc. (CAN) Financial Health: Key Insights for Investors.

The table below shows a snapshot of major institutional holdings from mid-2025, illustrating the foundation of institutional confidence before the recent strategic investment:

What this table hides is the power of the CEO, Nangeng Zhang, who is the largest individual shareholder, owning 12% of the shares outstanding. This high insider ownership is a double-edged sword: it aligns management's interests with shareholders' but also concentrates decision-making power. The recent institutional investment, however, acts as a check, giving those large funds a louder voice in the boardroom and pushing the company toward enhanced treasury management and operational efficiency, which led to a gross profit of $16.6 million in Q3 2025, a significant turnaround from a gross loss a year prior.

Market Impact and Investor Sentiment

You're looking at Canaan Inc. (CAN) and wondering who's driving the bus, and honestly, the answer is a mix of retail optimism and institutional conviction in a turnaround story. Investor sentiment is defintely shifting from cautious to moderately bullish, largely because the company is finally delivering on its operational promises.

Individual investors still hold the largest piece of the pie, owning about 59% of the company as of early 2025, which means their collective mood can swing the stock. But the big money-the institutional investors-is getting more comfortable, especially after seeing the Q3 2025 numbers. They're betting on the long-term shift toward high-performance computing, not just Bitcoin mining.

Here's the quick math on the positive shift: Canaan Inc. reported Q3 2025 total revenues of $150.5 million, a massive 104.4% year-over-year jump. That's a huge beat, and it's the kind of concrete number that changes minds fast. This financial strength is what's fueling the current positive sentiment, despite the inherent volatility of the crypto sector.

Recent Market Reactions to Ownership and Earnings

The market has responded with sharp, positive moves to recent catalysts, essentially confirming the bullish sentiment. The most telling reaction was in mid-November 2025, when the stock surged approximately 21% following the Q3 earnings release. This happened even as the price of Bitcoin dipped below $90,000, which shows investors are now focusing on the company's business fundamentals-like the strong demand from North American clients-rather than just the daily crypto price action.

Another key signal was the institutional vote of confidence in early November 2025: a $72 million investment from major players like BH Digital and Brevan Howard. That kind of capital injection from sophisticated investors doesn't just happen; it signals a belief that the company's enterprise value of around $250 million is significantly undervalued. It's a classic case of smart money stepping in when they see a clear path to a re-rating. Overall, the stock gained an impressive 63% over the 90 days leading up to November 9, 2025, suggesting bargain hunters and growth investors are wading in.

• Stock surged 21% post-Q3 2025 earnings.
• $72 million institutional investment boosted confidence.
• Q3 2025 Gross Profit hit $16.6 million, a major turnaround from a $21.5 million loss a year prior.

Analyst Perspectives: Why They See a Multi-Bagger Upside

The Wall Street analyst community is largely in the 'Moderate Buy' to 'Strong Buy' camp, a clear indication that they see a significant disconnect between the current stock price and the company's intrinsic value. The consensus 12-month price target is sitting around $3.61 to $3.81 based on the ratings of 8 to 10 analysts, which implies an upside potential of over 250% from recent trading levels.

Analysts like Kevin Cassidy from Rosenblatt and Mark Palmer from Benchmark have maintained or raised their 'Buy' ratings, with price targets often set at $4.00. One outlier target from BTIG is even at $8.00. What this estimate hides, however, is the full risk profile of a company still heavily reliant on the volatile Bitcoin mining ecosystem, even with the push into AI-ready infrastructure.

The core of the bullish thesis is twofold: operational efficiency and strategic diversification. The Q3 2025 results showed a positive adjusted EBITDA of $2.8 million and a cash balance that jumped 80.9% to $119.2 million since the start of the year. Plus, the company has successfully grown its cryptocurrency treasury to 1,610 BTC and 3,950 ETH as of October-end 2025, formalizing a long-term holding strategy. For a deeper dive into their business model, you can check out Canaan Inc. (CAN): History, Ownership, Mission, How It Works & Makes Money.

Here's a snapshot of the forward-looking financial targets that are exciting analysts:

The next action for you is to map your own risk tolerance against this analyst consensus. If they hit their Q4 2025 revenue guidance of $175 million to $205 million, that positive momentum will defintely carry into the next fiscal year.