Canaan Served Nasdaq Deficiency Notice; Stock Languishes at $0.79
Mining rig manufacturer Canaan Inc. faces a July 2026 deadline to regain Nasdaq compliance as its contrarian pivot away from AI fails to ignite share price momentum.
Canaan Inc. (NASDAQ: CAN) has entered the regulatory danger zone. The Singapore-based mining hardware manufacturer received a formal deficiency notice from Nasdaq on January 14, 2026, after its American Depositary Shares (ADS) failed to close above the $1.00 threshold for 30 consecutive business days. The stock is currently trading around $0.79, down roughly 63% over the last 12 months.
The Clock Is Ticking
The notice, disclosed in a Form 6-K filing, triggers a 180-day compliance window. Canaan has until July 13, 2026, to boost its share price. To regain good standing, the stock must close at or above $1.00 for at least 10 consecutive business days before the deadline. Failure to do so could force the company into a reverse stock split, a maneuver often viewed as a distress signal, or face relegation to over-the-counter (OTC) markets.
The Company intends to monitor the closing bid price of its ADSs and may, if appropriate, consider implementing available options… to regain compliance.
Contrarian Bet Backfires?
This regulatory pressure highlights the risks of Canaan’s strategic divergence from the broader sector. While competitors like Core Scientific and Hut 8 pivoted aggressively toward high-performance computing (HPC) and AI hosting to diversify revenue, Canaan shuttered its AI chip unit in mid-2025 to double down on pure-play ASIC manufacturing. The market has yet to reward this “back to basics” approach, leaving the hardware maker exposed to Bitcoin’s volatility without the AI premium buoying its peers.
If the stock remains non-compliant by July, Canaan may apply for a second 180-day grace period, provided it meets all other listing standards and signals intent to cure the deficiency.
