Canaan Faces Nasdaq Compliance Challenge Amid Operational Milestones

Canaan US1347481020

Canaan Inc., a prominent manufacturer of Bitcoin mining hardware, finds itself navigating a critical regulatory deadline while simultaneously reporting significant business progress. On January 14, 2026, the company was formally notified by the Nasdaq Stock Market that it is not in compliance with a key listing requirement.

The exchange issued the notice because Canaan’s American Depositary Shares (ADS) closed below the $1.00 minimum bid price for 30 consecutive trading sessions. This violates Nasdaq Listing Rule 5550(a)(2). The company has been granted a standard 180-day cure period, which expires on July 13, 2026, to regain compliance. Throughout this period, the ADS will continue to be listed and traded on the Nasdaq Global Market.

To satisfy the requirement and have the deficiency notice rescinded, the share price must achieve a closing bid price of at least $1.00 for a minimum of ten consecutive business days before the July deadline.

Strong Operational Performance Presented

Separately, at the 28th Annual Needham Growth Conference on January 15, Canaan’s management highlighted robust operational achievements. The company disclosed a fourth-quarter revenue figure of $150 million, marking its highest quarterly sales result in 13 quarters. Furthermore, Canaan reported holding approximately 1,750 Bitcoin in its treasury as of the end of the year.

The company’s operational capacity also saw substantial growth. Its deployed hashrate reached 9.91 exahashes per second (EH/s) by December 31, 2025, representing an 82% year-over-year increase. The revenue breakdown shows a diversified model, with machine sales constituting roughly 70% of the total, followed by self-mining at approximately 20% and home mining solutions contributing around 8%.

Product Development and Strategic Initiatives

Canaan used the conference to unveil its latest mining rigs, the Avalon A16 and A16 XP models, which are designed with a focus on enhanced energy efficiency. The company is also expanding its portfolio for the retail mining sector with products like the Avalon Mini 3 and Avalon Q, emphasizing their potential for waste heat recovery in residential settings.

On the innovation front, Canaan is advancing several pilot projects. These include exploring gas-to-compute applications and utilizing computing heat in agricultural environments. A notable proof-of-concept initiative launched on January 6, 2026, in partnership with Bitforest Investment Ltd., involves a 3.0‑MW waste heat recovery system at a greenhouse facility in Canada.

Key Factors for Investors to Monitor

Moving forward, several developments will be crucial for Canaan’s trajectory:
* Regulatory Compliance: Success in elevating its ADS closing price to $1.00 or above for ten straight days by the July 13, 2026, cutoff.
* Product Rollout: Market reception and efficiency performance of the new Avalon A16 series, alongside demand for the home mining devices.
* Project Scalability: Implementation and potential expansion of the 3.0‑MW proof-of-concept and other pilot programs involving alternative energy and heat reuse.
* Financial Reporting: The next quarterly earnings release, anticipated for late in the first quarter or early in the second quarter of 2026.
* Market Conditions: Fluctuations in the price of Bitcoin and broader network dynamics, which directly impact mining profitability and operational results.

The interplay between resolving the Nasdaq listing requirement and sustaining its operational momentum will likely define Canaan’s near-term path.