Canaan Receives Nasdaq Delisting Warning Amid Share Price Deficiency

Canaan Inc. (NASDAQ: CAN) has received a deficiency notification from Nasdaq for failing to maintain a minimum bid price of $1.00 per American Depositary Share (ADS) according to the notification. The notification was issued on January 14, 2026, following 30 consecutive business days of trading below the threshold as reported. The company now has 180 calendar days until July 13, 2026, to regain compliance according to the timeline.

The violation pertains to Nasdaq Listing Rule 5550(a)(2), which mandates a minimum bid price of $1.00. Canaan's shares currently trade at $0.82, down 56.84% year-to-date. To meet compliance, the company's closing bid price must exceed $1.00 for at least 10 consecutive business days within the 180-day window as required.

The notification does not immediately affect the listing or trading of Canaan's securities on Nasdaq. However, the company must demonstrate its intent to resolve the issue. Options include a reverse stock split, which could consolidate the share count and raise the bid price according to analysis.

Why Did This Happen?

Canaan's shares have traded below the $1.00 benchmark for an extended period. As of January 16, 2026, the stock closed at $0.79, a decline of 3.8% from the previous day. This is a continuation of a broader trend, with the stock down 63% over the past 12 months.

The decline has coincided with a shift in the cryptocurrency mining industry. Many firms have pivoted toward artificial intelligence (AI) computing power, reducing their demand for traditional mining hardware according to market analysis. This shift has impacted Canaan's business model and, by extension, its stock price.

How Did Markets React?

Canaan's stock reacted negatively to the announcement. On Friday, January 16, the shares dropped 3.66% to 79 cents, according to Benzinga data. The market's response underscores investor concern over the company's ability to meet the compliance requirements and the potential for delisting.

Despite the short-term decline, Canaan has reported positive operational metrics. The company reported a 61% year-over-year increase in operating hashrate and 82% growth in installed hashrate by the end of December 2025. Its digital asset holdings also reached a record high, with 1,750 BTC and 3,951 ETH in treasury.

What Are Analysts Watching Next?

Analysts and investors are closely monitoring Canaan's ability to meet Nasdaq's requirements. The company has until July 13, 2026, to raise its share price above $1.00 for 10 consecutive trading days. Failure to do so could trigger a second compliance period, requiring the submission of a transfer application and a $5,000 fee.

If the company fails to meet even the extended compliance window, it may face delisting. Delisting would reduce liquidity and visibility for the stock, potentially making it harder to attract new investors.

Canaan has stated it will take all reasonable measures to regain compliance. The company has also renewed a $30 million share repurchase program, which could help support the stock price. Analysts will be watching the effectiveness of this strategy and any further strategic moves by the company.

Investors are also paying attention to broader market trends in the cryptocurrency and AI sectors. Canaan's ability to adapt to these trends could influence its long-term performance and its chances of maintaining its listing on Nasdaq.