Crypto mining hardware maker is given 180 days to lift its stock price or risk removal from the exchange
Canaan Inc., one of the world’s largest makers of crypto mining rigs, is under pressure to stabilise its stock after Nasdaq warned the company it no longer meets the exchange’s minimum price requirement for continued listing.
The notice comes at a sensitive moment for publicly listed crypto miners, many of which are grappling with falling margins, a shift toward artificial intelligence infrastructure and volatile equity markets.
Nasdaq informed Canaan this week that its shares have closed below $1 for 30 consecutive business days, putting the company out of compliance with listing rules. Under exchange regulations, Canaan now has 180 days, until July 13, to lift its closing bid price to at least $1 for a minimum of 10 straight trading sessions.
The company confirmed the warning in a statement, noting that its shares last traded above the $1 mark on Nov. 28. On Friday, Canaan stock closed at $0.79, down 3.8% on the day, extending a long decline that has seen the stock fall 63% over the past 12 months.
A shrinking window to regain compliance
If Canaan fails to meet the price requirement by the July deadline, Nasdaq may consider granting additional time, provided the company submits a formal plan to regain compliance. One option under review is a reverse stock split, which would reduce the number of outstanding shares to lift the trading price.
If Nasdaq determines that Canaan cannot reasonably restore compliance, the stock could be delisted and moved to over the counter markets. Such a move typically makes shares harder to trade and has often triggered sharp sell offs for companies facing removal from major exchanges.
Canaan’s warning reflects broader stress across the crypto mining sector. Many mining firms have shifted some operations toward providing computing power for artificial intelligence workloads, slowing demand for new mining rigs and reshaping their business models.
Despite the pressure, the company has seen pockets of demand. In October, Canaan disclosed that a US based buyer had ordered 50,000 of its latest generation Avalon A15 Pro mining rigs, its largest order in more than three years. The announcement briefly lifted its share price by 25%, though the rally did not hold.
Other firms face similar scrutiny
Canaan is not alone. In December, Bitcoin treasury firm Kindly MD received a similar Nasdaq warning after its shares traded below $1 for 30 consecutive days. Nasdaq gave Kindly MD until June to regain compliance. Its stock closed at $0.46 on Friday and has not traded above $1 since late October.
Earlier, Nasdaq delisted Windtree Therapeutics, a biotech company that had established a BNB treasury, for failing to meet listing requirements. Windtree shares plunged 77% on the day Nasdaq announced its delisting, as investors rushed to exit before the stock was removed from the exchange.
For Canaan, the coming months will be critical. The company must convince investors that it can stabilise its business and restore confidence in its stock, or risk losing its place on one of the world’s most influential public markets.
