Crypto mining hardware maker Canaan Inc. is under pressure after receiving a formal warning from Nasdaq. The exchange notified the company on Wednesday that it no longer meets listing rules after its shares closed below $1 for 30 straight trading days. Canaan confirmed the notice on Friday.
Under Nasdaq rules, the company now has 180 days, until July 13, to bring its closing bid price back to at least $1 for 10 consecutive sessions.
Canaan shares last closed above $1 on November 28. Since then, the stock has stayed under the threshold as selling pressure continued across crypto linked equities. The company’s shares have fallen 63% over the past 12 months.
Canaan Stock Slides as Sector Shifts
Canaan closed Friday’s session at $0.79, down 3.8% on the day. The stock has not traded above $3 since December 2024. The move lower comes as many mining firms cut back on buying new mining rigs and redirect capital toward selling computing power for artificial intelligence tasks. That shift has reduced demand for traditional mining hardware, hitting suppliers like Canaan.
The company’s stock remains highly sensitive to order flow and headline driven moves. In October, Canaan said a US based firm purchased 50,000 units of its Avalon A15 Pro rigs, the largest order in over three years. Shares jumped 25% on that news, but the move faded within weeks as broader market pressure returned.
Options to Regain Compliance
Canaan said it may seek more time if it fails to regain compliance by July 13. Nasdaq staff can grant an extension if they believe the company has a workable plan to lift its share price. One option outlined by Canaan is a reverse stock split, which would reduce the number of outstanding shares to raise the price per share. Such moves often help meet listing rules but do not change market value.
If Nasdaq decides Canaan cannot fix the issue, the stock would be delisted. Shares that move to over the counter markets often see lower volume and wider spreads, which tends to push prices lower.
Canaan is not alone. In December, Bitcoin treasury firm Kindly MD received a similar notice after trading below $1 for 30 days. Nasdaq gave it until June to regain compliance. Kindly MD closed Friday at $0.46 and last traded above $1 in late October.
In August, Nasdaq delisted Windtree Therapeutics after it failed to meet listing rules. Windtree shares fell 77% the day the delisting was announced as investors rushed to exit.