While many cryptocurrency companies face the risk of being delisted from Nasdaq in 2025, another company has recently been added to this list.
Canaan, a prominent manufacturer of Bitcoin mining equipment, has received a warning from Nasdaq.
Consequently, Canaan is now facing the risk of delisting from the Nasdaq stock exchange due to a sustained decline in its share price.
Nasdaq Listing Rule Compliance
In its official notification, Nasdaq informed Canaan that it has not complied with the exchange's listing rules. This non-compliance stems from the company's shares closing below $1 for 30 consecutive trading days. The Nasdaq's "$1 rule" stipulates that if a company's stock remains below $1 for 30 consecutive trading sessions, it is deemed non-compliant with the exchange's listing requirements.
Path to Compliance and Precedent
Canaan, like many other companies in the cryptocurrency sector, has experienced a significant drop in its share value, with a 63% decrease over the past year. The company now has a 180-day period, extending until July 13, to rectify this situation and avoid delisting.
To successfully avoid delisting, Canaan's share price must close at or above $1 for a minimum of 10 consecutive trading days.
It is important to note that Canaan is not the first company to receive a delisting warning from Nasdaq. Previously, Nasdaq had issued a similar warning to KindlyMD, a healthcare company led by David Bailey, the CEO of Bitcoin Magazine.