Canaan Faces Nasdaq Warning
Canaan, a manufacturer of cryptocurrency mining equipment, has received a warning from Nasdaq regarding its stock performance. The exchange has given the company until July to elevate its share price above $1 for a stretch of 10 consecutive days, a move necessary to prevent potential delisting. This announcement was made public by Canaan through a press release issued on Friday.
Current Stock Performance
Currently traded under the CAN ticker, Canaan’s shares are priced at approximately $0.79. This is a significant drop, as the company’s stock has not crossed the $5 threshold since 2022, and it last closed above $2 in October. At that time, Canaan had announced a major milestone with a substantial order for 50,000 Avalon A15 Pro mining rigs, marking its largest order in three years.
Chairman and CEO Nangeng Zhang stated that this order showcased both Canaan’s product strength and its dedication to building long-term relationships, particularly in the U.S. market.
Despite an initial 25% surge in stock value following the announcement, investor enthusiasm proved short-lived.
Investor Concerns
Further compounding its troubles, Streeterville Capital, a significant institutional investor based in Utah, completely divested its Canaan holdings on December 12. This exit was notable, as it had represented roughly $439 million in investment, according to the firm’s SEC filing.
Canaan is not alone in facing such challenges; similarly, Kindly MD, a Bitcoin treasury firm, received a warning last month and has until June 2026 to boost its share price above $1 for 10 consecutive days to avoid a similar fate.
Future Strategies
While other companies have previously utilized a reverse stock split—where the number of outstanding shares is reduced and the price per share adjusted accordingly—to enhance their share value, Canaan is now in a race against time to save itself from delisting.
