Canaan faces the risk of being delisted from Nasdaq

Canaan Inc., a cryptocurrency mining hardware manufacturer, is facing the risk of delisting from Nasdaq after its stock price dropped 63% over the past 12 months. Nasdaq has issued a warning because Canaan’s shares have traded below $1 continuously for 30 trading days, violating listing rules. The company has 180 days, until 07/13, to bring its closing stock price back to at least $1 for at least 10 consecutive trading days to restore compliance.

Canaan’s stock currently trades around $0.79 and has not surpassed $3 since late 2024. The pressure on the stock stems from the trend of many cryptocurrency mining companies shifting to provide computing power for AI, reducing demand for mining machines. If the company fails to meet the requirements by the deadline, Canaan may request an extension and consider a reverse stock split to boost the share price; otherwise, it faces the risk of delisting.