Nasdaq has issued a formal notification to Canaan Inc. (NASDAQ: CAN), the major manufacturer of Bitcoin mining hardware, warning the company that it is currently non-compliant with listing standards and faces potential delisting. The primary issue cited is Canaan’s failure to maintain the required minimum bid price of $1.00 per share for 30 consecutive business days, a violation of Nasdaq Listing Rule 5550(a)(2).
Canaan, headquartered in China, received the delinquency notice which immediately triggers a compliance period. Standard Nasdaq procedure grants the company 180 calendar days to resolve the deficiency. To regain compliance, Canaan’s American Depositary Shares (ADSs) must achieve a closing bid price of at least $1.00 for a minimum of ten consecutive business days within the allotted timeframe.
This delisting threat reflects significant challenges facing Canaan, including intense market competition from rivals like Bitmain and the general volatility in the cryptocurrency mining sector. The stock has experienced sustained pressure following broader downturns in crypto valuations and shifting regulatory environments. The minimum price requirement is a common hurdle for volatile stocks trading on U.S. exchanges.
In response to the notice, Canaan confirmed receipt and stated its commitment to maintaining its Nasdaq listing. The company is evaluating all available options to restore compliance, which could include implementing a reverse stock split if the stock price does not naturally recover above the mandated threshold within the compliance period.
Source: Nasdaq Warns Bitcoin Hardware Maker Canaan About Delisting
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