Canaan Inc – ADR (NASDAQ:CAN) shares are trading lower Friday afternoon after the crypto-mining hardware maker disclosed it has fallen out of compliance with Nasdaq’s minimum bid rule, even as it reported strong year-end operating metrics. Here’s what investors need to know.
- Canaan stock is showing weakness. Why is CAN stock retreating?
Canaan Faces Nasdaq Compliance Deadline Looming
The company said it received a notice from Nasdaq on Wednesday stating that its American depositary shares have closed below $1.00 for 30 consecutive business days, violating Listing Rule 5550(a)(2). Canaan has 180 calendar days, until July 13, 2026, to regain compliance by lifting the closing bid to at least $1.00 for 10 straight trading sessions. The stock will continue to trade on the Nasdaq Global Market during this grace period.
If the requirement is not met by July, Canaan may request an additional 180-day extension, which would require an online application, a non-refundable $5,000 fee and continued satisfaction of other listing standards. Nasdaq could ultimately delist the shares if the company fails to cure the deficiency, potentially forcing Canaan to consider a reverse stock split.
Canaan Reports Surging Hashrate
The compliance warning comes just days after Canaan reported upbeat December and full-year 2025 mining results. The company said operating hashrate rose 61% year over year, installed hashrate jumped 82%, and its digital-asset treasury reached 1,750 BTC and 3,951 ETH.
Management highlighted improved power efficiency and a record 250 MW of installed capacity as it doubles down on its long-term Bitcoin (CRYPTO: BTC) mining strategy despite ongoing market volatility.
CAN Shares Fall Friday
CAN Price Action: Canaan shares were down 3.66% at 79 cents at the time of publication on Friday, according to Benzinga Pro data.
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