Canaan's Nasdaq Delisting Battle and Strategic Viability: Can the Turnaround Justify a Near-Term Bet?

The cryptocurrency mining sector has always been a high-stakes arena, and Canaan Inc. (NASDAQ: CAN) is no stranger to volatility. As the company battles Nasdaq's delisting rules, investors are left weighing its operational momentum against persistent financial headwinds. Let's break down whether Canaan's recent strides in mining performance and strategic innovation can offset its near-term risks-and if this is a viable investment for 2026.

The Delisting Clock Ticks

Canaan's American depositary shares (ADSs) have languished below Nasdaq's $1.00 minimum bid price for 30 consecutive business days, triggering a 180-day compliance window that expires on July 13, 2026. As of January 2026, the stock trades around $0.79, squarely in "penny stock" territory. To avoid delisting, Canaan must either sustain a $1.00 bid price for 10 consecutive days or pursue a reverse stock split-a common but unconfirmed contingency plan. The company has yet to announce a definitive strategy, raising red flags for risk-averse investors.

Operational Momentum: A Silver Lining?

Despite the stock's woes, Canaan's operational performance in late 2025 has been robust. The third quarter delivered $150.5 million in revenue, a 104.4% year-over-year surge, driven by a 241% jump in mining revenue to $30.6 million. Its deployed hashrate grew 61% year-over-year, and installed hashrate hit , outpacing global Bitcoin network growth. By December 2025, the company mined 86 BTC and expanded its crypto treasury to 1,750 BTC and 3,951 ETH, a 35% increase in Bitcoin holdings compared to 2024. These metrics suggest Canaan is capitalizing on Bitcoin's cyclical upturn and scaling its mining footprint effectively.

Strategically, the company is also innovating. A 3.0 MW pilot project in Manitoba aims to repurpose mining heat for greenhouse agriculture, aligning with global trends in energy efficiency. Meanwhile, a renewed $30 million share repurchase program signals management's confidence in undervaluation.

Financial Realities: Profitability Remains Elusive

However, operational gains haven't translated to profitability. According to financial reports, Canaan reported a negative EBITDA of $135.84 million and a free cash flow yield of -58% as of December 2025. While mining gross profit surged to $16.6 million in Q3 2025 (vs. a $21.5 million loss in 2024), the company's overall financial health remains precarious. Analysts caution that consistent profitability may not materialize until 2027, leaving a gap between operational progress and investor expectations.

Risk vs. Reward: A Calculated Bet?

Canaan's situation is a classic case of "execution vs. expectation." On one hand, its hashrate expansion, crypto treasury growth, and energy innovation position it as a formidable player in the Bitcoin mining sector. On the other, the delisting threat and lack of profitability create a high-risk profile. For investors with a long-term horizon, Canaan's operational strides could justify a cautious bet, particularly if Bitcoin's price trajectory improves in 2026. However, near-term volatility-driven by the delisting clock and EBITDA challenges-demands a high tolerance for uncertainty.

Final Take

Canaan's Nasdaq delisting battle is a ticking time bomb, but its operational momentum in mining and strategic diversification efforts offer a compelling narrative for the long term. If the company can execute a reverse stock split or rally its share price before July 2026, it may retain its Nasdaq listing and continue scaling its crypto operations. Yet, with negative EBITDA and a stock price that reflects deep skepticism, this remains a speculative play best suited for risk-tolerant investors who believe in Bitcoin's 2026 potential.

For now, the question isn't whether Canaan has the tools to survive-it's whether it can convince the market to give it the time to use them.