Nasdaq told the company earlier this week that Bitcoin mining hardware maker Canaan must raise its stock price by July to avoid delisting.
The company said in a press release Friday that its stock must rise above $1 for at least 10 consecutive days by July to avoid delisting.
If a company fails to achieve compliance, Nasdaq can give the company more time to regain compliance. Other companies facing similar problems have used reverse stock splits to boost stock prices. This involves reducing the number of shares outstanding and increasing the price per share proportionately.
The Singapore-based hardware manufacturer trades under the CAN ticker and was trading at $0.79 at the time of writing. The company’s stock hasn’t traded above $5 since 2022, and last closed above $2 in October, according to Yahoo Finance data.
Canaan just announced in October that it had received an order for 50,000 Avalon A15 Pro mining rigs, its largest order in three years.
“This landmark order is an important victory for Canaan and reflects the strong resurgence of the U.S. market,” Nangen Zhang, Canaan’s chairman and CEO, said in a press release at the time. “This highlights not only the strength of our Avalon A15 Pro, but also our deep commitment to serving customers around the world, with a particular focus on building long-term partnerships in the U.S. market.”
The company’s stock price rose 25% on the same day the news broke. However, investors’ euphoria did not last long.
In early December, Utah-based investment firm Streeterville Capital became Canaan’s largest institutional investor. But then the company completely unwinded the position on Dec. 12, and it was worth about $439 million at the time, according to SEC filings.
Canaan is not the only company to receive a warning letter from Nasdaq. Last month, Bitcoin treasury firm Kindly MD received a similar letter informing it that its stock must rise above $1 for at least 10 consecutive days by June 2026 to avoid delisting.
