Canaan Inc., a serious participant within the Bitcoin mining {hardware} house, has acquired a Nasdaq notification concerning non-compliance with the change’s minimal bid value requirement.
Nasdaq has now put the corporate in what is usually known as a “delisting window.” Nevertheless, it’s essential to notice that the delisting is but to be enforced.
What does the Nasdaq’s letter imply for Canaan Inc.?
For now, the Nasdaq notification letter has no fast impact on the itemizing or buying and selling of the corporate’s securities on Nasdaq, which implies there may be nonetheless time to undo the harm.
Pursuant to Nasdaq Itemizing Rule 5810(c)(3)(A), Canaan will get a 180-calendar-day compliance interval, or till July 13, 2026, to regain compliance with the minimal bid value requirement. For this to occur, the closing bid value of the corporate’s (American Depositary Shares) ADSs should meet or exceed US$1.00 per share for no less than 10 consecutive enterprise days through the 180-calendar-day compliance interval.
Ought to Canaan fail to attain this by July 13, 2026, it may get extra time, however that depends upon the willpower of the employees at Nasdaq.
To qualify for such a factor, Canaan might want to submit, no later than the expiration date, a web based switch software accompanied by a non-refundable $5,000 software payment.
The corporate will even have to fulfill the continued itemizing requirement for market worth of publicly held shares and all different preliminary itemizing requirements, excluding the bid value requirement, and supply written discover of its intention to repair the difficulty through the second compliance interval by effecting a reverse inventory break up if obligatory.
Throughout the overview course of that can comply with, Nasdaq employees will decide whether or not the corporate has the power to repair the issue. In the event that they specific a scarcity of religion in its capability to take action, or within the occasion the corporate doesn’t submit the switch software or make the required illustration, Nasdaq reserves the suitable to delist Canaan’s inventory.
What’s Canaan doing to take care of Nasdaw standing?
On January 16, 2026, Canaan Inc. confirmed that it acquired the written discover of non-compliance from Nasdaq. In response to the corporate, this was as a result of the bid value of its ADSs had fallen beneath $1.00 and remained that method for as much as 30 consecutive enterprise days, which violates the change’s Itemizing Rule 5550(a)(2).
Consultants have famous that this type of minimal bid value discover shouldn’t be unusual amongst shares on the decrease finish of the worth spectrum, particularly in sectors as risky as crypto mining, the place share costs are identified to be closely influenced by the risky value swings related to Bitcoin, {hardware} demand and broader market sentiment.
In response to current experiences, Canaan’s inventory has been buying and selling beneath the $1 mark for fairly a while, and as of January 16, it’s priced at round $0.78, down over 3% from its earlier shut. Additionally it is down considerably over the previous 12 months, so it’s no shock it has acquired the written discover of non-compliance from Nasdaq.
For now, the corporate will control the closing bid value of its ADSs and is predicted to do the whole lot in its energy to regain compliance. Nevertheless, till Nasdaq employees determines that the delisting will occur, the corporate’s ADSs will stay listed on the Nasdaq International Market, unaffected by the present drama.
In response to the discover, the corporate has shared plans to maintain an in depth eye on the scenario whereas contemplating choices to handle it. Many different corporations have been in comparable positions earlier than and have been in a position to regain compliance, although a few of them needed to resort to reverse splits.
Whether it is finally delisted, buying and selling may turn out to be restricted to over-the-counter offers, which finally reduces liquidity and visibility, one thing most corporations can’t afford.
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