Bitcoin mining hardware maker Canaan has until July to raise its share price and escape delisting, Nasdaq told the firm earlier this week.
The company now has until July to raise its share price above $1 for at least 10 consecutive days to escape being delisted, it said in a press release Friday.
If the company fails to achieve compliance, Nasdaq can grant the firm more time to come back into compliance. Other firms faced with a similar issue have used a reverse stock split to boost their share price. It involves reducing the number of outstanding shares and increasing the price per share proportionally.
The Singapore-based hardware maker, which trades under the CAN ticker, was changing hands for $0.79 at the time of writing. The hardware company’s shares haven’t traded above $5 since 2022 and last closed above $2 in October, according to Yahoo Finance data.
In October, Canaan had just announced that it received an order for 50,000 of its Avalon A15 Pro mining rigs—the largest order it had receive in the past three years.
“This milestone order represents a significant win for Canaan and reflects the robust resurgence of the U.S. market,” Canaan Chairman and CEO Nangeng Zhang said, in a press release at the time. “It highlights not only the strength of our Avalon A15 Pro but also our deep commitment to serving customers worldwide, with a particular focus on building long-term partnerships in the U.S. market.”
The company’s stock jumped 25% the same day the news went out. But the investor euphoria didn’t last for long.
In early December, Utah-based investment firm Streeterville Capital was Canaan’s largest institutional holder. But then the firm completely exited its position on Dec. 12, which was worth around $439 million at the time, according to its SEC filing.
Canaan is not the only firm that’s gotten a warning letter from Nasdaq. Last month, Bitcoin treasury company Kindly MD got a similar letter telling the firm that it had until June 2026 to raise its share price above $1 for at least 10 consecutive days to avoid being delisted.