Canaan Inc. Faces Nasdaq Delisting Threat Amid Share Price Decline

According to Cointelegraph, crypto mining hardware manufacturer Canaan Inc. has been warned by Nasdaq to elevate its share price within 180 days or risk being delisted from the prominent stock market index. The company disclosed on Friday that Nasdaq had informed them on Wednesday about non-compliance with listing rules, as Canaan's shares had a closing bid price below $1 for the past 30 business days. Nasdaq has set a deadline of July 13 for Canaan to meet the minimum bid price requirement, which mandates a closing bid price of at least $1 per share for a minimum of 10 consecutive trading days. Canaan's shares last exceeded the $1 mark on November 28. This situation arises as numerous crypto mining firms have shifted their focus towards providing computing power for artificial intelligence, consequently reducing their purchases of crypto mining equipment. Over the past year, Canaan's shares have declined significantly, reflecting the broader trend among crypto mining companies pivoting towards AI. On Friday, Canaan's shares closed at $0.79, marking a 3.8% decrease for the day, and have not surpassed $3 since December 2024. Canaan has indicated that if it fails to elevate its share price by the July 13 deadline, Nasdaq staff might consider granting additional time for compliance. The company mentioned the possibility of applying for an extension, which could involve implementing a reverse stock split to increase the share price by reducing the number of outstanding shares. Should Nasdaq determine that Canaan cannot meet the share price requirement, the company would face delisting, typically resulting in shares becoming less liquid as they transition to over-the-counter markets. In October, Canaan announced a significant order from a U.S.-based company for 50,000 of its latest-generation "Avalon A15 Pro" mining rigs, marking its largest order in over three years and causing a 25% surge in its stock price. Meanwhile, in December, Bitcoin treasury company Kindly MD received a similar delisting notice from Nasdaq due to its shares trading below $1 for 30 days. Kindly MD has until June to rectify its share price, with shares closing at $0.46 on Friday, last exceeding $1 in late October. In August, Nasdaq delisted Windtree Therapeutics, a biotech firm, for non-compliance, leading to a 77% drop in its share price as investors exited before its removal from the exchange.