Canaan Inc. (NASDAQ: CAN) shares fell on Tuesday, trading around $0.56 and moving further below the $1 minimum bid price the company must regain by July to avoid a potential Nasdaq delisting.
Market move
The latest decline extends pressure on the Bitcoin mining hardware maker’s stock as it struggles to stay compliant with Nasdaq’s listing standards. The sub-$1 level increases the urgency for the company to lift its share price back above the exchange’s threshold.
Nasdaq compliance timeline
Under Nasdaq rules, companies that trade below a $1 bid price for 30 consecutive business days typically receive a deficiency notice and a 180-calendar-day window to regain compliance. Compliance is usually restored if the closing bid price is at least $1 for a minimum of 10 consecutive business days within the allotted period. If a company cannot meet the requirement within the initial window, Nasdaq may grant an additional extension if certain conditions are met. Companies sometimes pursue measures such as reverse stock splits to boost their bid price.
About Canaan
Canaan is a developer of application-specific integrated circuit (ASIC) equipment used for Bitcoin mining. The company is one of the sector’s established manufacturers, supplying hardware that powers industrial-scale mining operations.