Nasdaq has issued a formal warning to Canaan Inc., citing non-compliance with its minimum bid price requirement. The notice follows a prolonged decline in the company’s share price.
Canaan disclosed that its stock closed below $1 for 30 consecutive trading days. Under Nasdaq rules, listed companies must maintain a closing bid price of at least $1 per share.
The exchange has granted Canaan a 180-day compliance period, ending on July 13. To remain listed, the company must see its shares close above $1 for at least 10 consecutive trading days.
Mining Hardware Sector Faces Mounting Pressure
Canaan shares recently closed around $0.79, marking a decline of more than 60% over the past year. The stock has not traded above $3 since late 2024.
The warning highlights broader challenges across the crypto mining hardware sector. Demand for ASIC miners has weakened as many operators pivot toward artificial intelligence and high-performance computing workloads.
As a result, hardware purchases have slowed, affecting revenue visibility for manufacturers. Despite pockets of recovery, the sector remains under strain.
Company May Seek Extension or Reverse Split
Canaan stated that if it fails to regain compliance by the deadline, it may apply for an extension from Nasdaq. One option includes executing a reverse stock split to increase the nominal share price.
Previously, the company announced a major U.S.-based order for 50,000 Avalon A15 Pro mining rigs. The news briefly lifted the stock, but gains quickly faded.
Other crypto-related firms have received similar warnings in recent months. In many cases, failure to meet Nasdaq requirements resulted in delisting and reduced liquidity. This underscores the ongoing volatility facing publicly traded crypto infrastructure companies.