Nasdaq advised the corporate earlier this week that Bitcoin mining {hardware} maker Canaan should elevate its inventory worth by July to keep away from delisting.
The corporate stated in a press launch Friday that its inventory should rise above $1 for a minimum of 10 consecutive days by July to keep away from delisting.
If an organization fails to attain compliance, Nasdaq can provide the corporate extra time to regain compliance. Different corporations going through related issues have used reverse inventory splits to spice up inventory costs. This includes decreasing the variety of shares excellent and rising the value per share proportionately.
The Singapore-based {hardware} producer trades below the CAN ticker and was buying and selling at $0.79 on the time of writing. The corporate's inventory hasn't traded above $5 since 2022, and final closed above $2 in October, in response to Yahoo Finance information.
Canaan simply introduced in October that it had obtained an order for 50,000 Avalon A15 Professional mining rigs, its largest order in three years.
“This landmark order is a vital victory for Canaan and displays the sturdy resurgence of the U.S. market,” Nangen Zhang, Canaan's chairman and CEO, stated in a press launch on the time. “This highlights not solely the energy of our Avalon A15 Professional, but in addition our deep dedication to serving prospects around the globe, with a selected deal with constructing long-term partnerships within the U.S. market.”
The corporate's inventory worth rose 25% on the identical day the information broke. Nevertheless, buyers' euphoria didn’t final lengthy.
In early December, Utah-based funding agency Streeterville Capital grew to become Canaan's largest institutional investor. However then the corporate utterly unwinded the place on Dec. 12, and it was value about $439 million on the time, in response to SEC filings.
Canaan is just not the one firm to obtain a warning letter from Nasdaq. Final month, Bitcoin treasury agency Kindly MD obtained the same letter informing it that its inventory should rise above $1 for a minimum of 10 consecutive days by June 2026 to keep away from delisting.
