Canaan is running out of time to hold on to its Nasdaq listing, underscoring the growing pressure on publicly traded crypto mining companies as weak stock performance collides with tougher market conditions.
The Bitcoin mining hardware maker revealed this week that Nasdaq has issued a formal warning after Canaan’s shares traded below the $1 minimum bid price for 30 consecutive business days. The notice triggers a 180-day compliance window, giving the company until July 13, 2026, to bring its share price back above the threshold.
Canaan said the notice has no immediate impact on trading. Its American depositary shares will continue to trade on the Nasdaq Global Market during the compliance period.
Shares Linger in Penny-Stock Territory
To regain compliance, Canaan’s stock must close at $1 or higher for at least 10 straight trading days. If it fails to do so by mid-July, the company may qualify for an additional grace period — provided it meets other listing requirements and submits a remediation plan. One possible option would be a reverse stock split.
For now, the shares are hovering around $0.79, firmly in penny-stock territory. Canaan hasn’t traded above $5 since 2022 and last closed above $2 in October, according to market data.
While the stock has seen brief rebounds, the broader trend remains sharply downward. Over the past year, Canaan has lost more than half its market value, reflecting persistent investor skepticism.
Operational Progress Hasn’t Moved the Stock
The delisting warning comes despite signs of operational momentum in 2025. In October, Canaan announced its largest hardware purchase in three years, signing a deal to buy 50,000 Avalon A15 Pro mining rigs.
That news briefly lifted the stock — but the rally quickly faded. It’s a familiar pattern for investors, as positive updates on operations have repeatedly failed to translate into lasting gains in the share price.
Sentiment took another hit in December when Streeterville Capital, previously Canaan’s largest institutional investor, sold its entire stake. The exit removed a key source of support and reignited concerns around liquidity, dilution risk, and long-term profitability.
Revenue Is Growing, Losses Persist
Financially, Canaan is growing — but it’s still not making money.
Revenue more than doubled year over year in the third quarter of 2025, reaching $150.5 million, driven by both hardware sales and self-mining operations. Even so, the company reported a net loss of $27.7 million for the quarter.
Margins remain deeply negative, and analysts don’t expect consistent profitability until 2027 at the earliest.
Canaan did post record adjusted EBITDA in mid-2025 and ended the third quarter with $119 million in cash, but those gains are offset by high cash burn and elevated financial risk.
Expanding Fast in a Tough Market
On the operational side, Canaan has expanded aggressively. By the end of 2025, its deployed hashrate had climbed to nearly 10 exahash per second, and its crypto treasury grew to a record 1,750 BTC, alongside significant Ethereum holdings.
At the same time, miners are facing rising electricity costs, tighter margins following Bitcoin’s halving, and intense competition among hardware manufacturers — all of which continue to squeeze profitability.
In December, Canaan announced a renewed $30 million share buyback program, signaling management’s belief that the stock is undervalued. So far, however, buybacks haven’t been enough to push the share price back above Nasdaq’s $1 threshold without clearer signs of sustained profitability.
Not an Isolated Case
Canaan isn’t alone. Other crypto-adjacent firms have also received Nasdaq compliance warnings in recent months.
In December, KindlyMD, a healthcare company that also holds Bitcoin on its balance sheet, disclosed that it had fallen out of compliance and was given until June 2026 to regain its listing status.
For Canaan, the next six months will be critical — not just for staying on Nasdaq, but for convincing investors that growth can eventually translate into durable profits.
