Canaan (CAN) Stock Drops 63% as Nasdaq Delisting Threat Looms

TLDR

• Canaan (CAN) received a Nasdaq delisting warning on January 14 after shares traded below $1 for 30 consecutive trading days
• The company has 180 days until July 13, 2026 to bring its closing bid price above $1 for at least 10 consecutive trading days
• Canaan shares closed at $0.79 on Friday, down 63% over the past 12 months as crypto mining firms shift focus to AI operations
• The company may pursue a reverse stock split if needed to meet compliance requirements and avoid delisting from the exchange
• If Canaan fails to regain compliance, its shares would move to over-the-counter markets where trading becomes more difficult

Canaan Inc. shares are in trouble. The crypto mining hardware manufacturer received a formal warning from Nasdaq on January 14, 2026.

Canaan Inc., CAN

The exchange notified Canaan that its stock had violated minimum bid price requirements. Shares traded below $1 for 30 consecutive business days.

Nasdaq has given Canaan a 180-day window to fix the problem. The deadline falls on July 13, 2026.

To regain compliance, Canaan’s closing bid price must hit at least $1 per share. This price level needs to hold for a minimum of 10 consecutive trading days.

Shares closed at $0.79 on Friday. That represents a 3.8% decline for the day. The stock last closed above $1 on November 28, 2024.

The past year has been brutal for Canaan investors. Shares have dropped 63% over the last 12 months.

The company hasn’t traded above $3 since December 2024. The decline reflects broader challenges facing crypto mining equipment makers.

Industry Shift Pressures Mining Hardware Sales

Many crypto mining companies have pivoted their operations. They’re now providing computing power for artificial intelligence applications instead.

This shift has reduced demand for crypto mining rigs. Canaan’s business model relies heavily on selling these machines.

The company did secure one major win recently. In October, a US-based company purchased 50,000 of Canaan’s Avalon A15 Pro mining rigs.

This marked Canaan’s largest order in over three years. The news sent shares surging 25% at the time.

Options for Avoiding Delisting

Canaan has several paths forward. The company stated it plans to monitor its share price closely.

Management said it would take “reasonable measures” to regain compliance. This could include a reverse stock split.

A reverse stock split reduces the number of outstanding shares. This increases the price of remaining shares proportionally.

If Canaan fails to meet the deadline, it can request an extension from Nasdaq. The exchange may grant additional time if the company commits to specific actions.

However, if Nasdaq staff determine Canaan cannot boost its share price, delisting becomes likely. Delisted stocks typically move to over-the-counter markets.

Trading becomes more difficult on these markets. Shares often decline further as liquidity dries up.

Canaan isn’t alone in facing this challenge. Kindly MD received a similar Nasdaq notice in December for trading below $1 for 30 days.

Kindly MD shares closed at $0.46 on Friday. The company has until June to regain compliance.

Windtree Therapeutics provides a cautionary tale. Nasdaq delisted the biotech company in August for failing to meet compliance requirements.

Shares plunged 77% the day Nasdaq announced the delisting. Investors rushed to exit before the removal took effect.

Canaan must bring its closing bid price above $1 for at least 10 consecutive trading days by July 13, 2026 to maintain its Nasdaq listing.

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