Canaan Inc., a prominent player in the crypto mining hardware market, is facing a tumultuous time as its stock received a formal warning from Nasdaq on January 14, 2026. The exchange notified Canaan that its share price had fallen below the minimum bid requirements, trading below the $1 threshold for 30 consecutive business days.
With a deadline of July 13, 2026 to rectify this situation, Canaan has a challenging road ahead. To regain compliance, the company must ensure that its closing bid price surpasses $1 for a minimum of 10 consecutive trading days. Currently, Canaan’s shares closed at $0.79, representing a staggering 63% drop over the past 12 months.
This significant decline underscores the rough terrain that Canaan and other crypto mining companies are navigating. The stock hasn’t traded above $3 since December 2024, reflecting a broader downturn in the crypto mining equipment sector.
Industry Shift Reshaping Crypto Mining
The landscape of the crypto industry is shifting, with many mining firms redirecting their resources towards artificial intelligence applications instead of traditional crypto mining. This trend has led to a diminished demand for crypto mining rigs, a sector where Canaan’s revenue heavily relies.
Despite these challenges, Canaan did achieve a notable success last October, securing an order for 50,000 of its Avalon A15 Pro mining rigs from a U.S.-based company. This marked the company’s largest order in more than three years and provided a temporary boost to investor sentiment, with shares surging 25% at the time.
Strategies to Avoid Delisting
To combat the threat of delisting, Canaan is keenly monitoring its share price. The company has indicated plans to take “reasonable measures” to regain compliance, which could potentially include a reverse stock split. This method would reduce the number of outstanding shares, thereby increasing the price of the remaining shares proportionally.
If Canaan fails to meet the deadline set by Nasdaq, there remains an option to request an extension. Nasdaq may grant additional time if the company proposes specific remedial actions. However, if it is determined that Canaan cannot elevate its share price, the specter of delisting looms larger, pushing its shares to over-the-counter markets, where trading becomes far more cumbersome for investors.
It’s worth noting that Canaan is not alone in this struggle. Recently, another company, Kindly MD, received a similar notification from Nasdaq for its shares trading below $1, with a compliance timeline that runs until June.
The peril of delisting is starkly illustrated by the case of Windtree Therapeutics, which was delisted by Nasdaq in August due to compliance failures, leading its shares to plunge by 77% at the time of the announcement.
In Canaan’s case, the time is ticking. To maintain its status on Nasdaq, the company must find a way to elevate its closing bid price above $1 for at least 10 consecutive trading days by the looming July 13 deadline.
