Crypto miner manufacturer Canaan receives Nasdaq delisting warning

Crypto mining hardware maker Canaan Inc., which has seen its shares down 63% in the last 12 months, has received a warning from Nasdaq to increase its share price within 180 days or face delisting from the major stock market index.

Canaan said in a statement on Friday that the Nasdaq contacted the company on Wednesday to warn it was not in compliance with listing rules, as its shares’ closing bid price had been below $1 for the last 30 business days.

The Nasdaq gave Canaan 180 days, until July 13, to “regain compliance with the minimum bid price requirement,” which requires its closing bid price to hit at least $1 per share for a minimum of 10 trading days in a row.

Shares in Canaan (CAN) last closed above $1 on Nov. 28. It comes as many crypto mining companies have moved some or all of their operations to providing computing power for artificial intelligence, reducing their purchases of crypto mining rigs.

*Shares in Canaan have traded down over the past 12 months as many crypto mining companies begin to focus on AI. Source:* *Google Finance*

Canaan closed trading on Friday at $0.79, down 3.8% on the day. Its shares haven’t traded above $3 since December 2024.

Canaan could get more time to regain compliance

Canaan said if it doesn’t boost its share price and regain compliance by July 13, Nasdaq staff could agree to grant it additional time to bring its share price up.

The company added that it could apply to the Nasdaq for an extension to regain compliance, which would see it agree to “effecting a reverse stock split if necessary,” where it reduces the number of outstanding shares to boost the price of those remaining.

If Nasdaq staff determine that Canaan can’t boost its share price, it will be subject to delisting, which has typically seen shares fall as they become harder to buy and sell as they move to over-the-counter markets.

Canaan said in October that a US-based company had bought 50,000 of its latest-generation “Avalon A15 Pro” mining rigs, its largest order in over three years, which sent its stock price surging by 25%.

In December, Bitcoin (BTC) treasury company Kindly MD received a similar delisting notice from the Nasdaq as its shares traded below $1 for 30 trading days.