Investment bank Benchmark has upgraded Bitcoin mining hardware manufacturer Canaan’s stock to a “buy” rating in an analyst’s note Tuesday. 

Equity research analyst Mark Palmer said that the firm’s strategy of expanding in North America will help its stock rise, and set a $3 price target—five times the current price. Canaan (CAN) is listed on the Nasdaq.

“We believe the company’s ADRs are very inexpensive,” Palmer wrote, adding that the bank expected CAN “to appreciate as it executes on its strategy, with a potential tailwind coming from the rising price of Bitcoin.”

The rating comes even as Bitcoin mining company stocks have taken a hit this year, a result of the asset’s price drop, increasing difficulty in mining new coins, and smaller rewards. 

On Monday, investment bank Compass Point reduced its rating on MARA Holdings, the world’s largest publicly traded miner, to a sell, noting the company’s declining hash rate as an ominous sign for its profitability. Other miners have also struggled.

Last year’s Bitcoin halving cut the number of Bitcoin earned for verifying transactions on the blockchain from 6.25 BTC to 3.125 BTC. While the price of Bitcoin has grown since the halving, more miners are struggling to say afloat given various headwinds impacting the industry.

Canaan’s stock finished the day trading for $0.60, and is down 21% over the last month. The Singapore-based company makes ASIC chips—used for mining the biggest cryptocurrency by market capitalization—and is growing its self-mining operations.

Palmer added that the company’s push for home mining rigs was a bonus. “CAN, by expanding into consumer markets, has diversified its revenue streams,” he wrote. 

Bitcoin mining is a business where large industrial-sized operations of expensive computing equipment work to keep the decentralized payment network running. This requires a lot of energy, and is therefore costly.

Companies in the space often look for places to set up shop where electricity is abundant and cheap.

Edited by James Rubin