Canaan warned of possible Nasdaq delisting over low share price

Crypto mining hardware manufacturer Canaan has received a warning from Nasdaq after failing to meet minimum share price requirements.

The company said Nasdaq notified it that its closing bid price had remained below $1 for 30 consecutive business days.

Canaan has been given 180 days, until July 13, to regain compliance with Nasdaq listing rules.

To avoid delisting, the company must see its share price close at or above $1 for at least 10 consecutive trading days.

Canaan’s shares have fallen roughly 63% over the past 12 months amid broader pressure on crypto mining firms.

The company last closed above $1 on November 28, according to market data.

Shares in Canaan closed at $0.79 on Friday, marking a daily decline of 3.8%.

The stock has not traded above $3 since December 2024.

Canaan said it may request additional time from Nasdaq if it fails to regain compliance by the July deadline.

The company added that it could consider a reverse stock split to boost its share price if required.

A reverse stock split would reduce the number of outstanding shares to raise the price of remaining shares.

Nasdaq staff will ultimately decide whether Canaan qualifies for an extension or faces delisting.

If delisted, Canaan’s shares would likely move to over-the-counter markets, where liquidity is typically lower.

The warning comes as several crypto miners shift focus towards providing computing power for artificial intelligence.

In October, Canaan said a US-based firm ordered 50,000 of its Avalon A15 Pro mining machines, its largest sale in more than three years.

That announcement triggered a 25% jump in Canaan’s share price at the time.

In December, Bitcoin treasury firm Kindly MD also received a Nasdaq delisting notice after its shares traded below $1.

Nasdaq has recently delisted several companies for failing to meet compliance standards, including firms with crypto exposure.

At the time of reporting, Bitcoin price was $92,511.38.