Canaan’s Shares Drop 7% Even as Q4 Revenue Soars – Nasdaq Delisting Warning Looms
The Bitcoin‑mining hardware maker posted its best quarterly revenue in three years, yet its stock slipped to a two‑year low, reigniting concerns over compliance with Nasdaq’s minimum‑price rule.
Strong Fourth‑Quarter Numbers
Canaan Inc., the Singapore‑based miner and equipment manufacturer listed on the Nasdaq, announced a 121 % year‑on‑year increase in Q4 revenue, reaching $196.3 million. The growth was driven by a surge in sales of Bitcoin mining machines, with the company shipping a record 14.6 exahashes per second (EH/s) of computing power.
Mining‑related income also rose sharply, with Bitcoin mining revenues up 98.5 % YoY to $30.4 million, bolstering the firm’s treasury to a historic 1,750 BTC (≈ $120 million). Its Ether holdings expanded to 3,950 ETH, valued at roughly $7.9 million.
The quarter’s performance marks Canaan’s highest revenue level since 2023 and reflects a “milestone order” from a U.S. institutional miner that helped lift total computing‑power sales by 60 % compared with the same period last year.
Stock Reaction: A Near 7% Decline
Despite the robust financial results, Canaan’s shares fell 6.9 %, trading around $0.56 on the Nasdaq. The decline made the stock one of the weakest performers among the 15 largest Bitcoin‑mining companies by market capitalization.
The drop comes as the broader Bitcoin network hash rate has been retreating from a peak of 1,150 EH/s in mid‑October to about 980 EH/s. Miner operators are increasingly turning off less‑profitable equipment and exploring alternative uses such as AI and high‑performance computing, which has pressured the valuation of pure‑play mining firms.
Nasdaq Delisting Risk Intensifies
Canaan is currently battling a compliance issue with Nasdaq. The exchange warned the company on 16 January that its share price must stay above $1 for at least ten consecutive trading days, or it faces delisting. The firm has a 180‑day window—until 13 July—to regain compliance. The last time Canaan closed above the $1 threshold was on 28 November 2025.
At the current price, the stock is down 18.1 % year‑to‑date and 70.2 % over the past twelve months, underscoring the severity of the listing risk.
Analyst Takeaways
| Factor | Implication |
|---|---|
| Revenue Growth | Demonstrates that demand for mining hardware remains strong, especially from institutional buyers. |
| Hash‑Rate Decline | Lower network difficulty can reduce miners’ earnings, dragging down valuations of mining‑focused companies. |
| Nasdaq Listing Rule | Failure to meet the $1 bid‑price requirement could force a move to an over‑the‑counter market, limiting liquidity and investor access. |
| Diversification Push | Canaan’s potential pivot toward AI/HPC workloads may mitigate exposure to Bitcoin‑price volatility but could dilute its core branding. |
| Investor Sentiment | Short‑term price pressure reflects market wariness over regulatory compliance more than fundamentals. |
Outlook
Canaan’s Q4 results affirm its capacity to generate revenue and expand its mining fleet amidst a challenging macro environment. However, the immediate priority for the company is to restore its Nasdaq compliance, a hurdle that will likely dominate investor attention over the next six months.
If Canaan can sustain hardware sales and successfully transition part of its compute capacity to higher‑margin AI or HPC applications, it may stabilize its share price and reduce delisting risk. Conversely, prolonged hash‑rate contraction and continued pressure on Bitcoin mining margins could keep the stock underperforming even as the balance sheet improves.
Investors should monitor Nasdaq’s compliance deadline (13 July), upcoming hardware order pipelines, and the trajectory of Bitcoin’s network hash rate to gauge whether the company can translate its strong quarterly fundamentals into long‑term market confidence.
Source: https://cointelegraph.com/news/crypto-miner-canaan-shares-fall-on-q4-report?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
