Nasdaq Notification and Compliance Period
Canaan Inc., a significant entity in the Bitcoin mining hardware sector, has been notified by Nasdaq regarding non-compliance with the exchange's minimum bid price requirement. This notification places the company in what is commonly referred to as a "delisting window," though the delisting has not yet been enforced.
Currently, the Nasdaq notification letter does not have an immediate impact on the listing or trading of Canaan's securities on Nasdaq. This provides the company with a window of opportunity to rectify the situation.
According to Nasdaq Listing Rule 5810(c)(3)(A), Canaan has a compliance period of 180 calendar days, extending until July 13, 2026. During this period, the closing bid price of the company's American Depositary Shares (ADSs) must consistently meet or exceed US$1.00 per share for a minimum of 10 consecutive business days.
If Canaan fails to achieve compliance by the July 13, 2026 deadline, it may be granted an extension. However, this depends on the discretion of Nasdaq staff.
To be eligible for such an extension, Canaan must submit an online transfer application and a non-refundable application fee of $5,000 by the expiration date. The company will also need to satisfy all other continued listing requirements, including market value of publicly held shares and initial listing standards, with the exception of the bid price requirement. Furthermore, Canaan must provide written notice of its intention to resolve the issue during a potential second compliance period, which may involve implementing a reverse stock split if deemed necessary.
During the subsequent review process, Nasdaq staff will assess Canaan's capacity to address the non-compliance. If Nasdaq staff expresses doubt about the company's ability to resolve the issue, or if Canaan fails to submit the transfer application or the required representation, Nasdaq reserves the right to delist the company's stock.
Canaan's Efforts to Maintain Nasdaq Status
On January 16, 2026, Canaan Inc. confirmed receipt of the written notice of non-compliance from Nasdaq. The company stated that the notification was issued because the bid price of its ADSs had fallen below $1.00 and remained below that threshold for 30 consecutive business days, thereby violating Nasdaq Listing Rule 5550(a)(2).
Industry experts have observed that such minimum bid price notifications are not uncommon for stocks trading at lower price points, particularly within volatile sectors like crypto mining. In these markets, share prices are often significantly influenced by the fluctuating prices of Bitcoin, hardware demand, and overall market sentiment.
Recent reports indicate that Canaan's stock has been trading below the $1 mark for an extended period. As of January 16, the stock was priced at approximately $0.78, representing a decrease of over 3% from its previous closing price. The stock has also experienced a substantial decline over the past year, making the Nasdaq notification unsurprising.
For the time being, Canaan will closely monitor the closing bid price of its ADSs and is expected to make every effort to regain compliance. Until Nasdaq staff makes a final determination regarding delisting, the company's ADSs will continue to be listed on the Nasdaq Global Market without being affected by the current situation.
In response to the notice, Canaan has announced plans to closely monitor the situation and explore potential solutions. Many other companies have faced similar circumstances and successfully regained compliance, sometimes by implementing reverse stock splits.
Should Canaan ultimately be delisted, its stock trading could be relegated to over-the-counter markets. This transition typically results in reduced liquidity and visibility, consequences that most companies strive to avoid.