Canaan Gets Nasdaq Delisting Notice as Shares Stay Below $1 for 30 Days

Canaan Inc. (NASDAQ:CAN) has received a deficiency notice from Nasdaq for failing to meet the minimum bid price requirement of $1.00 per share. The notification, dated January 14, 2026, follows 30 consecutive business days of its American depositary shares trading below the threshold. According to the notice, Canaan now has 180 calendar days to regain compliance with Nasdaq Listing Rule 5550(a)(2).

Nasdaq has granted Canaan until July 13, 2026, to raise its closing bid price to $1.00 or higher for at least 10 consecutive business days. As reported, if it fails to meet this requirement, the company may be eligible for an additional compliance period, subject to Nasdaq's approval.

The company stated it will monitor its stock price closely and take all reasonable measures to regain compliance. The company emphasized that the notice has no immediate impact on the listing or trading of its securities on the Nasdaq Global Market.

Why Did This Happen?

Canaan's shares have been under pressure for much of the past year, with the stock currently trading at around $0.79 per share. Over the past year, the price has dropped by more than 56%. The decline has been attributed to broader market conditions in the crypto sector, particularly the price volatility of Bitcoin and the high capital intensity of the mining equipment business.

The company's stock has also faced challenges from regulatory and geopolitical factors, including increased scrutiny of crypto assets and energy costs impacting mining operations as noted.

How Did Markets React?

Canaan's shares fell slightly after the announcement, closing at $0.79 on January 16, 2026. The stock has been volatile in recent months, with analysts and investors closely watching developments in the broader crypto market and the company's business performance.

Despite the compliance issue, Canaan recently reported strong growth in its installed hashrate, reaching 9.91 EH/s by the end of December 2025. The company also holds a significant amount of Bitcoin and Ethereum, with 1,750 BTC and 3,951 ETH in its treasury according to reports.

What Are Analysts Watching Next?

Analysts are closely monitoring Canaan's options for regaining compliance, including a reverse stock split. Such a move could artificially boost the share price to meet the minimum requirement, but it would not address underlying business performance. Some companies have used this tactic successfully in the past.

Alternatively, Canaan could seek to drive organic investor demand by improving its financial performance or aligning with broader trends in the crypto market. A potential resurgence in Bitcoin's price could also provide a tailwind for the stock.

A delisting would shift trading of Canaan's shares to over-the-counter markets, reducing liquidity and visibility. This would likely make it more difficult for the company to raise capital or attract new investors as noted.

Canaan has also renewed a $30 million share buyback program, which may signal management's confidence in the company's ability to stabilize its stock price. The previous buyback initiative repurchased approximately $4.9 million of shares.

Nasdaq has emphasized that the compliance process is still in progress and that the company's securities will remain listed during this period. The next key milestone will be whether Canaan's share price meets the $1.00 threshold for 10 consecutive business days.

Investors will be watching closely for further developments, as the outcome of this compliance challenge could have significant implications for the company's market position and access to capital.