Canaan Inc. on the Clock as Nasdaq Delisting Threat Looms

SINGAPORE – January 16, 2026 – Canaan Inc., a pioneering manufacturer of cryptocurrency mining machines, is now in a race against time to maintain its listing on the Nasdaq Global Market. The company announced it has received a formal deficiency notice from Nasdaq after its American depositary shares (ADSs) traded below the minimum requirement of US$1.00 for 30 consecutive business days.

The notice, received on January 14, starts a 180-calendar-day countdown, giving Canaan until July 13, 2026, to regain compliance. While the notification has no immediate effect on the trading of Canaan's stock (NASDAQ: CAN), it places the company under significant pressure to reverse its flagging market valuation and restore investor confidence.

A Narrow Path to Compliance

To escape the threat of delisting, Canaan's ADSs must achieve a closing bid price of US$1.00 or more for at least 10 consecutive business days before the July deadline. In a statement, the company affirmed its intention to monitor its stock price and “take all reasonable measures” to regain compliance.

Should the stock price not recover organically through market forces, Canaan has other options, though they are not without their own risks. If the company fails to meet the deadline, it may be eligible for a second 180-day compliance period. Qualifying for this extension would require Canaan to meet all other initial listing standards, pay a US$5,000 application fee, and formally declare its intention to cure the deficiency, potentially by executing a reverse stock split.

A reverse stock split is a common, if often controversial, tactic used by companies in this situation. The process involves consolidating existing shares into a smaller number of more valuable shares, artificially boosting the per-share price. For example, in a 1-for-10 reverse split, a shareholder with 100 shares trading at $0.50 would end up with 10 shares valued at $5.00 each. While effective at meeting exchange requirements, market analysts and investors often view this move as a cosmetic fix that fails to address underlying business weaknesses, sometimes leading to further downward pressure on the stock post-split.

Soaring Revenue, Lingering Losses

Canaan's current predicament reflects a stark contrast within its financial performance: impressive top-line growth clashing with persistent unprofitability. The company has demonstrated strong momentum in sales and operations, particularly in the latter half of 2025. Total revenues in the third quarter of 2025 surged to US$150.5 million, a 104.4% year-over-year increase, driven by robust demand for its Avalon series of mining machines and a highly productive in-house mining division.

During that same quarter, Canaan's mining operations generated a record US$30.6 million in revenue, mining 267 bitcoins at a high average price. The company has also strategically managed its balance sheet, growing its cash balance to US$119 million and accumulating a significant treasury of 1,750 BTC and 3,951 ETH by the end of 2025.

However, this operational expansion has not translated to the bottom line. Canaan reported a net loss of US$27.7 million in Q3 2025, continuing a trend of significant losses that have concerned investors. This ongoing cash burn highlights the immense capital expenditure and operational costs inherent in the crypto mining hardware sector, from research and development for next-generation chips to the electricity required to run its own mining farms. While the company's gross profit has improved, turning a US$21.5 million loss in Q3 2024 into a US$16.6 million profit in Q3 2025, it has not been enough to achieve net profitability.

Navigating the Crypto Mining Minefield

Canaan's struggles are not occurring in a vacuum. The entire cryptocurrency mining industry is a high-stakes environment characterized by extreme volatility and external pressures. The profitability of both hardware sales and mining operations is inextricably linked to the price of Bitcoin. When prices are high, demand for efficient miners soars; when prices crash, demand evaporates and mining margins are crushed.

The industry also grapples with fluctuating energy costs, the single largest operational expense for miners. Canaan has made strategic moves to mitigate this risk, achieving an industry-leading all-in power cost of around US$4 cents per kilowatt-hour at some of its facilities and exploring innovative energy solutions, such as converting flared natural gas into low-cost power for its computing systems. These efforts are crucial as the global Bitcoin network hashrate—a measure of total computing power and competition—continues to climb, forcing miners to become ever more efficient to remain profitable.

Adding another layer of complexity is the patchwork of global regulations, which can shift dramatically and create significant uncertainty for hardware manufacturers and mining operators alike. These combined headwinds create a difficult operating environment where even technologically advanced companies can see their market valuations plummet.

The Unforgiving ASIC Arms Race

Within this challenging market, Canaan is locked in a fierce technological and sales battle with a small number of dominant competitors, primarily Bitmain and MicroBT. The ASIC manufacturing space functions as a perpetual arms race, where the company with the most powerful and energy-efficient chip design gains a significant, if temporary, advantage. Older-generation machines can become obsolete in a matter of months.

Canaan continues to innovate, unveiling its next-generation Avalon A16 and A16 XP miners with improved energy efficiency. It has also found success in diversifying its product line, expanding into consumer-grade “home mining” units with its Avalon Home Series and securing major contracts, including a landmark order for over 50,000 miners in North America in late 2025. This strategic rebound in key markets demonstrates the company's resilience and the continued demand for its products.

However, the Nasdaq notice serves as a stark reminder that in the world of public markets, innovation and revenue growth alone are not enough. The journey from its successful 2019 IPO to its current struggle encapsulates the unique peril faced by crypto-native companies. For Canaan, the next six months will be a critical test, forcing it to convince investors that its impressive growth can finally translate into the sustainable profits needed to secure its long-term future on the public stage.