Canaan's Urgent Race Against Nasdaq Delisting: Can It Survive?

Canaan's Urgent Race Against Nasdaq Delisting: Can It Survive?

Summary: Canaan, a Bitcoin mining hardware manufacturer, is under pressure to maintain its Nasdaq listing. It has been notified it must raise its share price above $1 within 180 days to avoid delisting. The company has seen struggles with its stock price while facing financial challenges despite operational improvements.

Key Takeaways:

Canaan has been given 180 days to bring its share price back above $1 to avoid delisting from Nasdaq.
Currently, the stock is trading at around $0.79 and has shown an overall negative trend over the past year.
While revenue has increased sharply, the company still faces significant losses and challenges in achieving profitability.
Canaan's management believes the stock is undervalued, as indicated by its $30 million share buyback program.

Canaan Faces Nasdaq Delisting Threat

Canaan is on a tight deadline to keep its Nasdaq listing, reflecting the difficulties faced by publicly listed crypto mining firms as they deal with poor stock performance and strict market regulations.

Recently, the Bitcoin mining hardware manufacturer received a formal notice from Nasdaq, indicating that its shares have traded below the minimum bid price of $1 for 30 consecutive days. This sets a compliance deadline of 180 days, concluding on July 13, 2026.

Canaan has stated that this notice does not have an immediate impact on its listing or the trading of its American depositary shares. The shares will remain actively traded on the Nasdaq Global Market during the compliance period.

Current Stock Performance and Market Concerns

In order to regain compliance, Canaan's stock must close above $1 for at least 10 consecutive business days. If this does not occur by the end of July, the company may be eligible for an additional grace period, provided it meets other listing requirements and submits a compliance plan that could include actions like a reverse stock split.

As of now, Canaan shares are trading around $0.79, classified as penny stocks. The price has not exceeded $5 since 2022 and last surpassed $2 in October, according to market data.

Although there have been occasional rebounds, the overall trend for the stock remains sharply negative, with a loss of more than 50% in value over the past year.

This delisting warning comes after Canaan indicated potential operational improvements in 2025, reporting its largest hardware purchase in three years, involving a contract for 50,000 Avalon A15 Pro mining rigs. However, the enthusiasm from that news faded quickly, resembling a consistent pattern where positive updates do not lead to lasting price strength.

Investor confidence was further shaken in December when Streeterville Capital, the largest institutional holder, sold its entire stake in the company. This sale diminished a significant source of support for the stock, raising concerns about liquidity, risk of dilution, and the company's long-term profitability.

Financial Challenges Amidst Growth

Despite a surge in revenue due to hardware sales and self-mining activities, Canaan continues to struggle financially, remaining in the red. In the third quarter of 2025, revenue shot up more than 2.5 times from the previous year, reaching $150.5 million. Nevertheless, the company reported a net loss of $27.7 million during the same period.

Operating and net margins are still deeply negative, with analysts not expecting the company to achieve consistent profitability before 2027. Although Canaan achieved record adjusted EBITDA in mid-2025 and bolstered its cash reserves to $119 million by the end of Q3, the data also indicates a high cash burn rate and increased financial risks.

On the operational front, Canaan has aggressively expanded, with its deployed hashrate nearing 10 exahash per second by the end of 2025, and its cryptocurrency treasury rising to a historic 1,750 BTC along with substantial Ethereum holdings.

However, the company is facing rising electricity costs, reward compression following the Bitcoin halving, and fierce competition among hardware makers, which have put pressure on margins.

Canaan’s newly launched $30 million share buyback program, announced in December, signals that management believes the stock is undervalued. However, buybacks have not successfully lifted the share price above Nasdaq’s required threshold, as sustainable profitability and consistent investor interest remain elusive.

Canaan is not alone in grappling with such challenges; other cryptocurrency-related companies have recently received similar delisting warnings from Nasdaq. For instance, KindlyMD, a healthcare and Bitcoin treasury firm, admitted it has also fallen out of compliance and must recover by June 2026.