How will the strong Q2 2025 earnings and revenue beat affect Canaan Inc.'s stock price in the short term?

Short‑term impact

The Q2 beat is likely to trigger a near‑term price rally for Canaan (CAN). Revenue jumped 39.5% YoY to $100.2 million and Bitcoin‑related mining revenue surged 201.6%—the strongest quarterly performance in the company’s history. The market will view this as a validation of Canaan’s growth trajectory and its expanding Bitcoin treasury (1,511 BTC at end‑July), which is a tangible hedge against the crypto‑cycle. In a sector that is highly sensitive to earnings surprises, a 80‑point positive sentiment score usually translates into immediate buying pressure, especially on the NASDAQ where the stock is relatively liquid.

Technical and trade‑setup

On the daily chart, CAN has been trading in a tight range around the $2.00–$2.30 band since the start of the year. The earnings beat should provide the catalyst to break above the upper‑half‑range resistance near $2.25 with volume confirming the move. A short‑term breakout to $2.45–$2.55 (≈10‑15% upside) is realistic if the rally holds, while a pull‑back to the $2.10‑$2.15 support zone could offer a lower‑risk entry. Recommended risk management: enter on a retest of the breakout level, place a stop just below the recent swing low (~$2.00), and target a 10–12% gain.

Actionable take‑away

Given the strong fundamentals and the market’s positive reaction to the earnings beat, short‑term bullish bias is warranted. Traders can look for a breakout‑and‑pull‑back play, buying on a retest of the $2.25–$2.30 resistance with a tight stop under $2.00. If Bitcoin’s price remains stable or rises, the upside potential is reinforced; a sharp crypto‑downward move or broader risk‑off could quickly erode the rally, so keep the stop tight and monitor BTC price dynamics closely.