Canaan Inc. (NASDAQ: CAN) received a Nasdaq notice on January 16, 2026, that its American Depositary Shares had failed to meet the minimum bid‑price requirement under Listing Rule 5550(a)(2). The written notice was issued on January 14, 2026, and the company was given a 180‑day compliance period that ends on July 13, 2026. To regain compliance, Canaan must achieve a closing bid price of at least $1.00 for ten consecutive business days. If the company does not meet this threshold, Nasdaq may grant a second compliance period only after the company submits a transfer application and pays a $5,000 fee.
This is not the first time Canaan has faced a bid‑price deficiency. A similar notice was issued on May 13, 2025, and the company announced on October 16, 2025, that it had regained compliance. The recurrence of the issue signals persistent valuation challenges and suggests that the market has not yet fully recovered confidence in the company’s long‑term prospects. The stock has traded below $1 for extended periods, and the 12‑month decline of nearly 60% reflects the cumulative effect of these compliance lapses.
Canaan’s financial performance in the most recent quarter shows a mixed picture. Revenue rose 104.4% year‑over‑year to $150.5 million, driven by a surge in mining‑hardware sales and a modest increase in cryptocurrency‑related revenue. The revenue beat analysts’ expectations by $1.3 million, but earnings per share remained negative at $‑0.05, a beat of $0.01 versus the consensus of $‑0.06. A separate report for the same quarter, however, shows an EPS miss of $‑0.36 against a forecast of $‑0.01, highlighting volatility in mining revenue and the impact of higher operating costs. The mixed results underscore the company’s struggle to translate revenue growth into profitability while managing cost inflation and market‑price pressure on its hardware.
Management has outlined a multi‑pronged strategy to address the bid‑price deficiency and strengthen the business. CEO Nangeng Zhang emphasized continued investment in research and development, supply‑chain optimization, and expansion of self‑mining operations. He also highlighted the company’s focus on AI and data‑center markets, stating that “we are entering an era in which AI software and data centers will profoundly shape daily life.” Canaan plans to monitor the bid price closely and may consider a reverse stock split or other corporate actions to lift the share price, while maintaining cost discipline and pursuing new revenue streams such as home‑mining products and cryptocurrency treasury management.
The Nasdaq notice does not immediately affect trading, but it signals a delisting risk if the company fails to regain compliance. The recurring nature of the deficiency could impact Canaan’s ability to raise capital, secure partnerships, and maintain investor confidence. Analysts have maintained a “Strong Buy” consensus, citing the company’s underlying growth potential, but the persistent bid‑price issue remains a significant valuation concern that could weigh on future funding and market perception.
The market reaction to the notice has been muted. The stock traded in the $0.82–$0.87 range in early January, and the 12‑month decline of nearly 60% reflects long‑term investor sentiment rather than a sharp reaction to the latest notice. The lack of a pronounced price move suggests that the market has already priced in the risk of a potential delisting and the ongoing challenges to sustain a share price above $1.00.
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