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.
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.
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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.
The Nasdaq gave Kindly MD (NAKA) until June to boost its shares to avoid delisting. Shares in the company closed at $0.46 on Friday and last closed above $1 in late October.
In August, the Nasdaq delisted Windtree Therapeutics, a biotech company that established a BNB treasury a month earlier, for failing to meet compliance requirements.
Shares in the company fell 77% the day the Nasdaq announced it would delist Windtree as investors rushed to exit the company before it was removed from the exchange.
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