Share Price of the 'First Blockchain Stock' Plummets 96%, Is Canaan Technology Facing Delisting?

On July 15th, Canaan Technology announced that it has received a written notice from Nasdaq granting an additional 180-day grace period, extending the deadline to January 11, 2027. Prior to this, its ADS closing price had been below $1 for 30 consecutive trading days, triggering a compliance alert under Nasdaq's minimum bid price requirement.

The market reaction was muted. At the close, Canaan Technology traded at $0.29, with a total market capitalization of approximately $217 million, marking a decline of over 90% from its peak market value following its IPO in November 2019. Once crowned the 'World's First Blockchain Stock', the company now stands on the brink of delisting.

The 180-Day Delisting Countdown

Canaan's tug-of-war with Nasdaq's compliance department began in May 2025. At that time, the company first received a delisting warning due to its persistently low stock price below $1, and temporarily averted the crisis thanks to a rebound in Bitcoin's price. However, the reprieve was short-lived. On January 14, 2026, Nasdaq issued another notification: Canaan's ADS closing price had been below $1 for 30 consecutive trading days. The company was required to regain compliance by July 13th, meaning its closing price needed to reach or exceed $1 for 10 consecutive trading days.

The initial grace period expired on July 13th. Canaan failed to meet the requirement. In a last-ditch effort, the company moved its listing from the more stringent Nasdaq Global Market to the lower-barrier Nasdaq Capital Market on July 1st and applied for an additional 180-day extension.

On July 15th, this application was approved, setting a new deadline of January 11, 2027.

According to Nasdaq rules, if compliance cannot be restored by that date, Canaan Technology could ultimately face delisting. The company has indicated that, if necessary, it will consider implementing a reverse stock split to boost the share price—a move typically seen by the market as a sign of weakness.

Q1 2026 Earnings: Total Revenue Down 24.3%, Net Loss of $88.7 Million

Canaan's low stock price is not without reason. Its latest financial report reveals the company is in a state of severe financial hemorrhage.

On May 19, 2026, Canaan Technology released its unaudited Q1 financial report: total revenue was $62.7 million, a year-on-year decrease of 24.3% and a sharp sequential drop of 68%; net loss was $88.7 million, further widening from a net loss of $86.4 million in the same period last year. The company recorded a gross loss of $22.9 million, which included approximately $25 million in non-cash inventory impairment—indicating Canaan had to write down the value of its mining machine inventory on a large scale, reflecting a sharp contraction in market demand.

Even more dire is the company's Q2 revenue guidance of only $35 million to $45 million, signaling continued pressure on performance in the short term. As of March 31, 2026, the company's cash balance was $43.5 million, a significant reduction from $80.8 million at the end of 2025; however, the company recovered approximately $42 million in customer receivables in April, providing some relief to liquidity.

It is noteworthy that despite losses in its core business, Canaan's cryptocurrency holdings reached a record high: at the end of Q1, the company held 1,807.60 Bitcoins (valued at $142 million). These digital assets provide a certain hedge on the balance sheet but also tie its performance closely to cryptocurrency price volatility.

According to the latest data, Canaan's Bitcoin holdings have increased to 1,915, but their total value has fallen to $120 million.

Shattered AI Chip Dreams and the 'Pickaxe Seller' Dilemma

Canaan's predicament stems in part from a costly strategic misstep.

On June 24, 2025, the company announced the termination of its non-core AI chip business, fully refocusing on Bitcoin mining machines and proprietary mining. Its multi-year exploration of a 'second growth curve' ended in failure. According to public information, Canaan's edge computing products generated only about $900,000 in revenue in fiscal year 2024, while the operational expenses for this business segment were approximately $21.42 million, accounting for 15% of the company's total annual operating expenses. Under the pressure of a $249.8 million net loss in fiscal 2024, this 'cash-burning, non-revenue-generating' business was decisively cut.

However, returning to its core business did not make things much easier for Canaan. The mining machine industry is facing unprecedented competitive pressure. Compared to competitors like Bitmain, Canaan's market share continues to be squeezed. In Q2 2025, the company's total sold computing power was 6.4 million TH/s, a mere 3% year-on-year increase. By Q1 2026, product revenue had plummeted to $42.9 million, a cliff-like drop from $164.9 million in Q4 2024.

Zhang Nangeng, Founder of Canaan Technology

The essence of a mining machine manufacturer is being a 'pickaxe seller'—its fate is closely tied to the Bitcoin cycle. When Bitcoin prices are high and mining profits are substantial, miners are willing to increase capital expenditures; once prices slump and network-wide computing power competition intensifies, demand for mining machines rapidly cools. Since 2025, despite strong Bitcoin price performance at times, the mining industry as a whole has entered a low-margin phase in the 'post-halving' era, severely impacting Canaan's traditional business model.

Faced with the dual pressures of potential delisting and continuous losses, Canaan's management is attempting to transform from a pure hardware vendor into a 'computing power infrastructure service provider', seeking new life through vertical integration and energy sector initiatives.

Proprietary mining has become a key focus. As of the end of Q1 2026, Canaan's total computing power across 10 joint mining projects globally reached approximately 11 EH/s, a year-on-year increase of 66% and a sequential increase of 10.7%. The company acquired a 49% equity stake in Cipher Mining's ABC Projects in Texas. Additionally, the company launched a 3-megawatt pilot mining project in Canada, exploring the use of mining rig waste heat for greenhouse agriculture; and signed a 4.5-megawatt contract with a Japanese power engineering firm to participate in grid load regulation.

On the capital front, in November 2025, Canaan secured a total of $72 million in strategic investment from institutions including BH Digital and Galaxy Digital, intended to strengthen its balance sheet and fund infrastructure expansion. In December of the same year, the company's board approved a $30 million share repurchase plan, attempting to signal confidence to the market.

However, its stock price trend shows the market has not bought into this narrative.

Summary

Canaan's difficulties are a microcosm of the broader crypto mining winter.

Since 2025, the narrative surrounding the crypto industry in global capital markets has shifted significantly. With the explosion in demand for AI computing power, much of the capital previously directed towards mining machines and mining operations has pivoted to AI data centers and high-performance computing (HPC). Miners have begun migrating computing power to AI projects, directly compressing the demand space for Bitcoin mining machines.

A deeper challenge lies in the sustainability of the business model. As an ASIC chip design company, Canaan needs continuous R&D investment to maintain product competitiveness.

From a broader perspective, Canaan is undergoing a brutal process of de-bubbling. At its IPO in 2019, the company enjoyed a high valuation based on its status as the first blockchain stock. Today, the market no longer pays for the concept but demands tangible cash flow and profitability.

Until the next Bitcoin bull cycle arrives, profitability for mining companies will remain under pressure. Canaan Technology must prove within the next 6 months that it possesses the ability to navigate through this cycle.