Canaan faces fresh Nasdaq delisting threat as share price slips below $1 again
Canaan Inc., a major manufacturer of Bitcoin mining hardware, is once more on the brink of losing its Nasdaq listing after its share price dropped below the exchange’s minimum bid requirement for the second time in less than a year. The company’s American depositary shares (ADSs) have fallen more than 63% over the past 12 months, triggering renewed scrutiny from the exchange operator.
In a statement last week, Canaan confirmed it received an official notice from Nasdaq, which said the company is not in compliance with Listing Rule 5550(a)(2). That rule requires listed firms on the Nasdaq Capital Market to maintain a minimum closing bid price of at least 1 dollar for 30 consecutive business days.
Canaan emphasized that it plans to “continue monitoring the closing bid price” of its ADSs and will pursue “all reasonable measures” to restore compliance. For now, the company’s stock will keep trading on the Nasdaq Global Market during the allotted grace period, and the notice does not immediately affect the listing status.
Nasdaq has granted Canaan 180 calendar days, until 13 July 2026, to cure the deficiency. To regain compliance, the company must lift its share price to at least 1 dollar and maintain a closing bid at or above that level for a minimum of 10 consecutive trading sessions. Canaan last consistently held the 1-dollar mark in late November, before its price slipped back under the threshold.
If Canaan fails to satisfy the requirement by the July deadline, Nasdaq may, at its discretion, grant an additional 180 days for the company to address the issue. Such extensions are typically contingent on the issuer meeting other listing standards and demonstrating a realistic plan to return the stock above the minimum bid level.
Among the options Canaan is weighing is a potential reverse stock split. This financial maneuver reduces the number of outstanding shares while proportionally increasing the price per share, without changing the company’s overall market capitalization. For example, in a 1-for-5 reverse split, every five existing shares are consolidated into one new share, ideally pushing the quoted price back above 1 dollar if market conditions cooperate.
However, a reverse split alone does not fix underlying business challenges. Nasdaq staff will examine whether Canaan appears able to “cure the deficiency” sustainably. If the exchange concludes the company is unlikely to regain or maintain compliance—or if Canaan declines to pursue the necessary steps—Nasdaq can issue a formal decision to delist the securities.
At the close of trading on Friday, Canaan’s ADSs were down about 3.8% on the day, changing hands at roughly 0.79 dollars. That leaves the company needing an increase of about 27% just to touch the 1-dollar threshold, and then hold that level for the prescribed number of trading days.
This is not the first time Canaan has been in this position. In May last year, the company received a similar non-compliance notice after its stock traded below the 1-dollar level for too long. It eventually managed to resolve the issue within the allowed window. Momentum returned in October, when Canaan’s share price jumped nearly 25% to reach a nine‑month high of 2.05 dollars, helped by news of its largest order in more than three years for its Avalon A15 Pro mining rigs.
Yet that rally proved short-lived. The broader environment for Bitcoin mining has turned increasingly hostile. The most recent Bitcoin halving event cut block rewards, squeezing revenues for miners and those selling hardware to them. At the same time, Bitcoin’s relatively muted price performance in recent months has forced many mining operators to run on razor-thin—or even negative—profit margins, sharply limiting their capacity to invest in new equipment.
Canaan’s predicament mirrors the strain across the mining and crypto infrastructure sector. The company operates in a cyclical, highly capital‑intensive niche that is extremely sensitive to Bitcoin’s price, network difficulty, energy costs and regulatory trends. When Bitcoin rises sharply, demand for new, more efficient machines typically surges and margins can expand. When prices stagnate or fall, miners focus on survival and sweat their existing fleets rather than upgrading.
The latest warning to Canaan is part of a broader pattern of increased pressure on crypto-adjacent companies listed on U.S. exchanges. Recently, another Bitcoin‑focused firm, Kindly MD, also received a notice from Nasdaq for trading below the minimum bid threshold. That suggests that the exchange is enforcing compliance rules more assertively as volatile market conditions weigh on smaller-cap digital asset businesses.
For investors, a potential delisting is more than a symbolic blow. Should Canaan ultimately be removed from Nasdaq, its shares would likely migrate to an over-the-counter (OTC) venue. That typically reduces liquidity, widens bid–ask spreads, and can make it more difficult for institutional investors—who often face strict listing mandates—to hold the stock. All of this can exert additional downward pressure on the valuation.
On the other hand, successfully navigating the compliance process could act as a catalyst. A credible turnaround strategy, clarity on capital structure, and evidence of improving fundamentals—such as new large-scale hardware orders or cost reductions—could support a sustained move back above the 1-dollar mark without relying exclusively on financial engineering such as a reverse split.
Canaan’s management thus faces a dual challenge. On the market side, it must stabilize and lift the share price enough to meet Nasdaq’s demands. On the operational side, it needs to demonstrate that its product roadmap, including lines like the Avalon A15 Pro, can remain competitive as mining becomes more industrialized and energy‑efficient hardware is prioritized. Growing mining difficulty and rising power prices in many regions mean that older or less efficient machines rapidly become uneconomical.
The macro backdrop will also play a decisive role. If Bitcoin’s price recovers significantly, miners may once again race to install more advanced rigs, which would directly benefit hardware manufacturers like Canaan. In such a scenario, stronger order books could translate into improved financials and a more robust share price. Conversely, if Bitcoin continues to trade sideways or declines further, many miners will keep cutting capital expenditures, limiting near‑term demand and leaving companies like Canaan heavily exposed to price cycles they do not control.
Regulation and geographic diversification are additional variables. Some governments are tightening rules on high‑energy mining operations, while others are promoting themselves as crypto‑friendly hubs, particularly where excess or cheap energy is available. Hardware makers must adapt their sales strategies to these shifting regulatory landscapes, concentrating on regions where mining remains viable at scale.
In the coming months, market participants will be watching several key signals from Canaan: whether it formally proposes a reverse stock split, whether new large contracts for mining rigs are announced, and how its quarterly results reflect current mining economics. These data points will help determine if the company can organically strengthen its share price or must rely more heavily on technical measures to stay on Nasdaq.
For now, Canaan’s fate hangs between compliance deadlines and an unforgiving crypto cycle. The company still has time to correct course, but it must persuade both Nasdaq and investors that its business can weather the post‑halving environment and remain a relevant supplier to an increasingly competitive global mining industry.