In short
- Canaan should elevate its share worth above $1 for 10 consecutive days by July to keep away from Nasdaq delisting.
- The corporate's inventory trades at $0.79, down from a short spike after saying a significant 50,000-rig order in October.
- Largest institutional holder Streeterville Capital exited its $439 million place in December.
Bitcoin mining {hardware} maker Canaan has till July to lift its share worth and escape delisting, Nasdaq instructed the agency earlier this week.
The corporate now has till July to lift its share worth above $1 for at the very least 10 consecutive days to flee being delisted, it mentioned in a press launch Friday.
If the corporate fails to attain compliance, Nasdaq can grant the agency extra time to return again into compliance. Different companies confronted with an identical difficulty have used a reverse inventory cut up to spice up their share worth. It entails lowering the variety of excellent shares and rising the value per share proportionally.
The Singapore-based {hardware} maker, which trades underneath the CAN ticker, was altering arms for $0.79 on the time of writing. The {hardware} firm's shares haven't traded above $5 since 2022 and final closed above $2 in October, in response to Yahoo Finance knowledge.
In October, Canaan had simply introduced that it obtained an order for 50,000 of its Avalon A15 Professional mining rigs—the most important order it had obtain prior to now three years.
"This milestone order represents a big win for Canaan and displays the strong resurgence of the U.S. market," Canaan Chairman and CEO Nangeng Zhang mentioned, in a press launch on the time. "It highlights not solely the power of our Avalon A15 Professional but additionally our deep dedication to serving prospects worldwide, with a selected concentrate on constructing long-term partnerships within the U.S. market."
The corporate's inventory jumped 25% the identical day the information went out. However the investor euphoria didn't final for lengthy.
In early December, Utah-based funding agency Streeterville Capital was Canaan's largest institutional holder. However then the agency fully exited its place on Dec. 12, which was price round $439 million on the time, in response to its SEC submitting.
Canaan will not be the one agency that's gotten a warning letter from Nasdaq. Final month, Bitcoin treasury firm Kindly MD acquired an identical letter telling the agency that it had till June 2026 to lift its share worth above $1 for at the very least 10 consecutive days to keep away from being delisted.
