Canaan is struggling towards the time to retain its Nasdaq itemizing, highlighting the strain on publicly traded crypto mining firms as poor fairness efficiency and difficult market laws collide.

This week, the Bitcoin mining {hardware} producer disclosed that Nasdaq despatched it a proper discover as regards its shares being listed at lower than the minimal bid worth of $1 for 30 consecutive enterprise days, thereby activating a 180-day compliance interval ending July 13, 2026.

As Canaan acknowledged, the discover has no instant impact on the itemizing or buying and selling of its American depositary shares that may stay listed and traded on the Nasdaq World Market all through the compliance interval.

Canaan Shares Hover at $0.79 as Delisting Danger Grows

With a purpose to regain compliance, the inventory has to shut at the very least 10 consecutive enterprise days at or above $1. Until that happens earlier than the tip of July, the corporate might be topic to a different grace interval, assuming that it satisfies different itemizing standards and information a plan, which could embrace a reverse inventory cut up.

On the time of writing, Canaan shares have been altering arms round $0.79, firmly in penny inventory territory. The inventory has not traded above $5 since 2022 and final closed above $2 in October, in response to market knowledge.

Whereas short-term actions have proven occasional rebounds, the broader development has remained sharply unfavourable, with the inventory shedding greater than half its worth over the previous yr.

This delisting alert follows indications of operational enchancment in 2025, with Canaan reporting in October its largest {hardware} purchase in three years, a contract to buy 50,000 Avalon A15 Professional mining rigs.

That rally, nevertheless, pale shortly, reflecting a sample traders have seen repeatedly as constructive operational information fails to translate into sustained fairness energy.

Investor confidence took one other hit in December when Streeterville Capital, beforehand Canaan’s largest institutional holder, exited its complete place.

The sale eliminated a major supply of assist for the inventory and strengthened issues round liquidity, dilution threat, and long-term profitability.

Canaan Grows Quick, however Profitability Stays Elusive

Financially, Canaan nonetheless wears its monetary burden even supposing the income skyrocketed in 2025 because of not solely {hardware} gross sales but in addition self-mining actions; losses nonetheless dominated the underside line.

Income elevated greater than 2.5 occasions in comparison with the prior yr in the course of the third quarter of 2025 to succeed in $150.5 million, however the firm continued to publish a web lack of $27.7 million.

Working and web margins remained deeply unfavourable, and analysts don’t count on constant profitability earlier than 2027.

Though Canaan posted file adjusted EBITDA in mid-2025 and strengthened its money place to $119 million by the tip of Q3, knowledge additionally factors to excessive money burn and elevated monetary threat.

Operationally, the corporate expanded aggressively as its deployed hashrate climbed to almost 10 exahash per second by the tip of 2025, and its crypto treasury grew to a file 1,750 BTC alongside important ETH holdings.

On the identical time, rising electrical energy prices, post-halving reward compression, and intense competitors amongst {hardware} producers have squeezed margins.

Canaan’s renewed $30 million share buyback program, introduced in December, exhibits administration’s view that the inventory is undervalued.

Nevertheless, buybacks alone have thus far did not carry the share worth above Nasdaq’s threshold, because it lacks sustained profitability and steady investor demand.

Canaan shouldn’t be the one one dealing with the scenario, as different crypto-adjacent firms have lately confronted comparable Nasdaq warnings.

In December, healthcare and Bitcoin treasury agency KindlyMD disclosed that it, too, had fallen out of compliance and was given till June 2026 to get better.

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