Bitcoin Miner Canaan Races to Save Nasdaq Listing After Prolonged Slump

Source: Coindoo Original Title: Bitcoin Miner Canaan Races to Save Nasdaq Listing After Prolonged Slump Original Link:

Background

A prolonged slide in the share price of Canaan Inc. has triggered a regulatory deadline that could determine whether the company keeps its place on a major US exchange.

After months of trading below key thresholds, Nasdaq has formally notified Canaan that it no longer meets minimum listing requirements. The issue is straightforward but serious: the company’s stock has remained under $1 for an extended period, putting it at risk of removal unless corrective action is taken.

Key Takeaways

• Canaan faces possible Nasdaq delisting after its share price stayed below $1.
• The company has about six months to regain compliance or pursue measures like a reverse stock split.
• Weak demand for mining hardware, as miners pivot toward AI, has added pressure on the stock.

The Compliance Clock Starts

Under Nasdaq rules, listed companies must maintain a minimum closing bid price of $1. Canaan has failed to do so for more than 30 consecutive trading days, prompting the exchange to issue a compliance warning. The company has now been given roughly six months to reverse the situation by pushing its share price back above the $1 level and keeping it there for at least 10 straight sessions.

That may prove challenging. Canaan’s shares have been under sustained pressure for much of the past year, falling about 63% over the last 12 months. The stock recently closed at around $0.79 and has not traded above $3 since late 2024, highlighting how deep the decline has been.

Industry Shifts Add Pressure

Canaan’s struggles are unfolding against a changing backdrop in the crypto mining sector. Many mining firms have scaled back investment in new hardware as they pivot toward artificial intelligence and high-performance computing services. This strategic shift has reduced demand for traditional mining rigs, weakening sales prospects for hardware-focused manufacturers like Canaan.

While crypto prices have shown periods of strength, that has not translated into consistent demand for new mining equipment, leaving suppliers exposed to cyclical downturns and shifting capital priorities.

Options If Price Doesn’t Recover

Canaan still has options if its share price fails to recover in time. Nasdaq may grant an extension, provided the company presents a credible plan to regain compliance. One commonly used tool is a reverse stock split, which reduces the number of outstanding shares to artificially lift the price. While effective on paper, such moves often carry negative sentiment and do not address underlying issues.

If Nasdaq determines that Canaan cannot realistically meet the requirements, the company would be delisted and moved to over-the-counter markets. That transition typically leads to lower liquidity and can trigger further selloffs as some investors exit positions due to trading restrictions.

Not an Isolated Case

Canaan is far from alone. Other companies linked to crypto have faced similar challenges in recent periods, while some have ultimately faced delisting.

For Canaan, the coming months will be decisive. Whether through improved fundamentals, market recovery, or corporate restructuring, the company must find a way to stabilize its stock—or risk losing its Nasdaq listing altogether.