Canaan Technology's mining machine business reverses its fortunes amid headwinds, Nasdaq rings the warning bell for delisting

From the “Number One Blockchain Stock” to the brink of delisting, the situation of cryptocurrency mining hardware manufacturer Canaan Inc. (NASDAQ: CAN) has suddenly changed. Founded in 2013 by Zhang Nengeng and others, this Chinese semiconductor company successfully listed on the U.S. stock market in November 2019 but received a delisting warning from NASDAQ in early 2026. The core reason is that its stock price has been below $1 for 30 consecutive trading days, with the latest quote at $0.7888, and a total market value of only $443.1 million — all pointing to a deeper issue: the once-booming mining machine market is undergoing dramatic upheaval.

From AI Chip Dream to Return to Mining Machines

Canaan’s business transformation is a microcosm of the industry. The company once gained fame through自主研发 ASIC chips and RISC-V architecture commercial AI chips (Kanzhi K210), even claiming to be the first Chinese自主知识产权 AI chip company listed in the U.S. However, fierce competition in AI chips has intensified, and cryptocurrency mining has become a new pillar.

Over the past year, as many miners shifted to providing computing power for AI projects rather than traditional cryptocurrency mining, demand for mining equipment was directly impacted. The company’s stock price fell by 60.76%. After deep reflection, Canaan announced a strategic restructuring on June 24, 2025, ceasing non-core AI chip operations and refocusing on core businesses such as Bitcoin mining machine sales and self-mining — a strategic return.

NASDAQ Warning, Reverse Stock Split as a Possible Rescue Tool

According to an official notice on January 15, Canaan’s stock was delisted because its closing price had been below $1 for ten consecutive trading days, failing to meet the exchange’s minimum bid price requirement. NASDAQ granted the company a 180-day window, until July 13, to regain compliance. The last time the stock was above $1 was November 28 of the previous year; since then, it has continued to decline.

To overcome this, Canaan has indicated it may apply for an extension before July 13, including “a reverse stock split if necessary.” The logic of reverse splitting is to reduce the number of shares outstanding to increase the per-share value, a common rescue method for low-priced stocks. This is not an isolated case — in just two months, NASDAQ issued delisting warnings to a second company, and such notices related to cryptocurrency companies have become increasingly common in the industry.

Large Orders and Strategic Financing Double Boost

Despite the risk of delisting, Canaan has achieved notable successes in the mining machine business. In October last year, a U.S. company purchased 50,000 Avalon A15 Pro mining machines — the largest single order in over three years, which briefly boosted the stock price by 25%. This order demonstrated that high-end mining machines still have strong demand in the market.

Investor confidence remains intact. In November 2025, the company secured $72 million in strategic financing from well-known crypto investment firms such as BH Digital, Galaxy Digital, and Weiss Asset Management, aimed at strengthening its balance sheet and funding infrastructure projects. This scale of financing reflects investor recognition of the company’s prospects.

Record Mining Revenue, Self-Operated Business Drives Growth

Latest financial data shows that Canaan’s self-mining business is becoming a new growth engine. In Q2 2025, the company achieved revenue of $100.2 million, with mining income reaching $28.1 million — a record high. At the same time, Bitcoin holdings reached 1,511 BTC. In Q3, growth momentum further strengthened, with total revenue rising to $150.5 million, mining income at $30.55 million, and crypto holdings increasing to 1,610 BTC and 3,950 ETH by the end of October.

Based on current prices, Bitcoin is valued at $74,080, and Ethereum at $2,310, making the company’s crypto reserves quite substantial. In May 2025, the company produced 109 BTC in a single month — a new record, demonstrating its mining efficiency and scale advantages.

Global Expansion and Innovative Use of Waste Heat

Canaan is exploring new growth points through product innovation and geographic expansion. The company launched the A16 series Bitcoin miners and actively expanded overseas. It started a 2.5 MW mining pilot project in Canada, followed by another 3 MW pilot in January 2026. More creatively, the company is exploring using the heat generated from mining for greenhouse agriculture, integrating mining with agriculture.

International cooperation is also advancing. The company partnered with a Japanese power engineering firm, signing a 4.5 MW mining machine contract, which will be used for grid load regulation, reflecting new value dimensions of mining hardware in energy management. These initiatives show that Canaan is not only continuously upgrading its mining hardware but also seeking new commercial applications beyond traditional crypto mining.

Faced with NASDAQ’s delisting pressure, whether Canaan can turn the tide through reverse splits, business shifts, and global expansion remains to be seen by the market. But based on recent orders, financing, and self-mining revenue data, this once “Number One Blockchain Stock” still retains competitiveness in the mining machine field. The market’s expectations and stock price reactions, however, have yet to fully reflect these positive factors.