Mining machine leader faces life-and-death test: How Canaan Technology responds to NASDAQ delisting warning

Founded in 2013, Chinese chip manufacturer Canaan Inc. (Nasdaq: CAN) is experiencing an unprecedented crisis. Once hailed as the world’s “Number One Blockchain Stock,” the company has received a Nasdaq delisting warning after its stock price remained below $1 for 30 consecutive trading days. In response, the company plans to restore compliance within 180 days through measures such as a reverse stock split — this is the second delisting notice Nasdaq has issued to a cryptocurrency-related company in two months.

AI Boom Shifts, Mining Machine Business Becomes Core Reliance

Canaan’s difficulties stem from dramatic industry shifts. Over the past year, many miners have shifted computing resources from cryptocurrency mining to artificial intelligence projects, causing a sharp decline in demand for mining machines. This AI boom caused Canaan’s stock price to plummet by a total of 60.76% over the past 12 months, ultimately falling below the $1 threshold.

However, crises also bring opportunities. In June 2025, Canaan announced a strategic restructuring, deciding to terminate its non-core AI chip business units and focus entirely on Bitcoin mining machine sales and self-mining operations — a move that directly responds to market realities. Data shows that in Q2 2025, the company’s mining revenue reached $28.1 million, a record high; in Q3, this figure continued to grow to $30.55 million. The company’s Bitcoin reserves have also been steadily accumulating, reaching a total of 1,511 BTC and 3,950 ETH by the end of Q3 2025.

Orders and Financing Combine for Self-Help, Initial Results Seen

Facing delisting pressure, Canaan secured a major order in October last year — a U.S. company purchased 50,000 units of the latest Avalon A15 Pro mining machines, the largest deal in over three years. This order temporarily boosted the stock price by 25%, demonstrating market recognition of its mining products.

On the financing front, Canaan also achieved notable success. In November 2025, the company secured $72 million in strategic funding from crypto giant Galaxy Digital, professional investment firms BH Digital, and Weiss Asset Management, aimed at strengthening its financial position and supporting infrastructure projects.

Aggressive International Expansion, Extending the Mining Chain

Beyond the domestic market, Canaan is actively expanding overseas, which has become a key strategy for breaking through. In Q3 2025, the company launched new A16 series mining machines and initiated a 2.5 MW mining pilot project in Canada, followed by another 3 MW pilot project in January 2026. Interestingly, Canaan is exploring the use of mining heat for greenhouse agriculture, aiming to recycle thermal energy.

In Japan, the company has partnered with local electrical engineering firms, signing a contract for 4.5 MW of mining machines to assist with grid load regulation. These international collaborations not only broaden the application scenarios for its mining equipment but also open new revenue channels.

180-Day Deadline: Can Mining Business Save the Market?

Nasdaq has given Canaan until July 13, 2025, to rectify its compliance issues (this deadline has passed). The company now faces the practical challenge of improving its operational performance. If compliance is not restored, Canaan has indicated it may apply for an extension and implement a reverse stock split — a move that reduces the number of shares outstanding to increase per-share value, but essentially a gamble.

The real lifeline depends on sustained growth in the mining machine business. Currently, Bitcoin prices hover around $69,000, providing relatively stable support for mining economics. As long as Canaan can secure large orders, expand its self-mining operations, and deepen its international presence, the once “Number One Blockchain Stock” still has a chance to escape its predicament and regain market confidence.