#NASDAQ #Singapore #crypto mining #Canaan Inc.

Canaan Inc. Faces Nasdaq Compliance Challenge

Canaan Inc., a leading player in the cryptocurrency mining sector, has been notified by the Nasdaq Stock Market of a significant compliance issue regarding its American depositary shares (ADS). On May 13, 2025, the company received a formal written notice indicating that it has been non-compliant with Nasdaq Listing Rule 5550(a)(2) due to the closing bid price of its ADS falling below $1.00 per share for a consecutive period of 30 business days.

While this notification does not immediately affect the trading or listing status of Canaan's ADS, it does set in motion a critical compliance period. According to Nasdaq Listing Rule 5810(c)(3)(A), Canaan has until November 10, 2025, to rectify this situation. To regain compliance, the company must successfully drive the closing bid price of its ADS to at least $1.00 per share for a minimum of 10 consecutive business days within the designated 180-day period.

Should Canaan fail to meet this requirement by the end of the compliance period, there remains a chance to secure an additional 180-day window, contingent upon meeting other Nasdaq listing standards aside from the minimum bid price condition. This provision offers Canaan a lifeline to develop a strategic plan aimed at boosting its ADS price back to compliance.

Canaan Inc. intends to actively monitor the price movements of its shares and commit to all reasonable actions necessary to meet Nasdaq’s minimal bid price requirement. Despite receiving the notice, it is important to note that the company’s ADS will continue to be traded on the Nasdaq Global Market during this compliance window without interruption.

Canaan's Commitment to Compliance

In light of this notification, Canaan Inc. is pledging to implement a series of measures aimed at enhancing investor confidence and boosting the value of its shares. The management recognizes the essential nature of compliance in maintaining Nasdaq listing privileges and plans to share updates with investors accordingly.

Founded in 2013, Canaan has been at the forefront of innovations in high-performance computing, focusing particularly on the design of ASIC chips for cryptocurrency mining. The company made history by launching the world’s first commercially viable ASIC miner, branded as Avalon, which revolutionized the mining of cryptocurrencies such as Bitcoin. Moreover, Canaan successfully navigated an initial public offering (IPO) on the Nasdaq Global Market, reflecting its significant growth and potential within the tech industry.

Canaan’s operations are underpinned by a robust commitment to research and development, enabling the continuous advancement of mining technologies. As the global demand for cryptocurrencies shifts and evolves, Canaan Inc. remains steadfast in its goal to satisfy market needs while adhering to regulatory expectations.

Looking Ahead

The upcoming months are pivotal for Canaan as it navigates the compliance landscape. The company will continue to assess the market dynamics and make necessary adjustments to ensure it remains compliant not only with Nasdaq rules but also with the evolving expectations of investors and regulatory bodies.

With its strong foundation in tech innovation and commitment to transparency, Canaan Inc. is poised to overcome this hurdle in its journey. The management is committed to keeping stakeholders informed about the progress in addressing the compliance issues, as well as updates on its ongoing business operations and strategic direction. Investors are encouraged to stay engaged as developments unfold in the coming weeks and months, reaffirming Canaan’s resilience and dedication to success in the growing cryptocurrency market.