Canaan Receives Nasdaq Initial Listing Rule Compliance Deficiency Notice

Canaan Inc. (NASDAQ: CAN) has been notified by Nasdaq of a compliance deficiency under Listing Rule 5550(a)(2). The company's American depositary shares (ADSs) have closed below $1.00 for 30 consecutive business days, triggering the requirement to regain compliance. The notification does not immediately affect the listing or trading of the company's securities.

The compliance issue comes as Canaan's stock has declined significantly in recent months. As of January 16, 2026, the stock trades at $0.82, reflecting a 56.84% drop over the past year.

Nasdaq has provided a 180-day compliance period, ending on July 13, 2026, for Canaan to meet the $1.00 minimum bid price requirement.

To regain compliance, Canaan must achieve a closing bid price of at least $1.00 for 10 consecutive business days during the compliance period. If it fails by July 13, 2026, the company may apply for an additional grace period by submitting a transfer application and paying a $5,000 non-refundable fee.

Why Did This Happen?

Canaan's stock price has been under pressure amid broader market volatility in the cryptocurrency and blockchain sectors. The company's ADSs have been below the $1.00 threshold for an extended period, raising concerns about potential delisting if no corrective measures are taken.

The company attributes part of the issue to general market conditions and the performance of its underlying business. Despite reporting record revenue of $150 million in its most recent quarter, the stock has struggled to maintain momentum.

What Are Analysts Watching Next?

Analysts are monitoring whether Canaan can implement effective measures to stabilize its stock price. Options include a reverse stock split, which is a common remedy for firms facing similar compliance issues.

In a recent investor presentation, Canaan outlined its strategy to grow its hashrate and cryptocurrency holdings, including a record 1,750 bitcoins and 3,951 ETH. The company also renewed a $30 million share buyback program, aiming to support its stock price through capital return initiatives.

Despite the compliance issue, analysts remain cautiously optimistic. BTIG, B. Riley, and several other firms have maintained Buy ratings on the stock, with price targets ranging from $2.00 to $8.00.

What Steps Are Being Taken?

Canaan has stated it intends to monitor its ADSs closely and take all reasonable measures to regain compliance. The company emphasized that its ADSs will continue to trade on the Nasdaq Global Market during the compliance period.

The notification was disclosed in accordance with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of deficiency notifications. The company has also outlined potential scenarios for regaining compliance, including regulatory filings and shareholder communications.

The company's ability to execute its compliance plan will be critical. Should it fail to meet the minimum bid price requirement, it may be forced to consider further actions, such as restructuring or delisting from Nasdaq.

Conclusion

Canaan's compliance issue under Nasdaq rules highlights the challenges faced by firms in the cryptocurrency sector. While the company has a track record of innovation and growth, the stock's current price is a concern for both investors and regulators. The company has time to act and must demonstrate its commitment to maintaining its listing status.

The outcome of the compliance period will have significant implications for Canaan's capital structure and investor confidence. For now, the company's ADSs remain listed, and it is focusing on executing its business strategy while addressing the compliance issue.