- Canaan received a second Nasdaq non-compliance notice in a year for trading below $1.
- The firm must regain $1+ for 10 straight trading days by July 13, 2026, to avoid delisting risk.
- Weak miner margins and post-halving pressure continue to weigh on mining-related stocks.
Canaan Inc., a Bitcoin mining hardware manufacturer listed on the Nasdaq, is facing renewed delisting risk after its shares fell below the exchange’s $1 minimum bid price requirement for the second time in less than a year. The warning adds pressure on the company as Bitcoin miners struggle with weaker profitability, rising competition, and post-halving margin compression.
Canaan disclosed the latest development in a statement last week, confirming that it received a formal non-compliance notice from Nasdaq. The notice cites Nasdaq Listing Rule 5550(a)(2), which requires listed companies to maintain a closing bid price of at least $1.00 for 30 consecutive business days.
Canaan said it will monitor its American depositary shares closely and take “all reasonable measures” to regain compliance. Until then, the stock will remain listed and trade normally on the Nasdaq Global Market during the compliance period, meaning the notice does not immediately impact trading access for investors.
July 13 deadline forces share price recovery
Nasdaq has given Canaan a standard 180-day window until July 13, 2026, to restore compliance. To meet the requirement, Canaan must push its share price back above $1 and sustain that level for 10 consecutive trading days.
Canaan lost the $1 level on Nov. 28, triggering the compliance clock. As of Friday’s close, shares traded at $0.79, down more than 63% over the past 12 months. The stock would need to rise roughly 27% to reclaim the minimum threshold.
If the company fails to meet the requirement by July, Nasdaq may offer an additional 180-day extension. However, Nasdaq will review whether Canaan has a credible plan to cure the deficiency before granting more time.
Reverse stock split remains on the table
Canaan acknowledged that it may need to consider a reverse stock split if the share price does not recover naturally. A reverse split reduces the number of outstanding shares while increasing the price per share. Companies often use this tool to avoid delisting, although markets sometimes interpret it as a sign of weakness.
Nasdaq staff will evaluate whether the company can realistically fix the deficiency. If Nasdaq concludes that Canaan cannot recover compliance, or if Canaan does not take the required steps, the exchange can issue a delisting notice.
Second warning highlights ongoing volatility
This is not Canaan’s first warning under the same listing rule. In May, Nasdaq issued a similar non-compliance notice, but Canaan resolved it within the allowed period. Later, the stock surged nearly 25% and hit a nine-month high of $2.05 in October, after the company announced its largest mining rig order in over three years tied to its Avalon A15 Pro units.
However, this quickly dissipated as there was further selling of crypto-linked equities, and there was a reassessment of mine profitability.
The Bitcoin mining sector remains under pressure
The case of Canaan is but a reflection of the broader decline in Bitcoin mining-related stocks. The latest Bitcoin halving decreased block rewards and consequently put pressure on the revenue from mining. At the same time, Bitcoin’s uneven price performance over recent months has pushed operators into thin or negative margins, especially those with higher energy costs or weaker balance sheets.
Canaan is not alone in facing Nasdaq scrutiny. Crypto-linked companies across multiple categories, from miners to Bitcoin treasury firms, have received similar minimum bid warnings, including Kindly MD last month.
For Canaan, the next few months will likely determine whether it can stabilize investor confidence and restore compliance through either a market recovery or corporate action.
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