The stock price of the first blockchain stock has plummeted 96%, is Canaan Inc. facing delisting?

市场 reaction was muted. By market close, Canaan’s stock was priced at $0.29, with a total market capitalization of approximately $217 million, representing a decline of over 90% from its peak market value following its listing in November 2019. The company, once hailed as the world’s first blockchain stock, now finds itself teetering on the brink of delisting.

A 180-Day Countdown to Delisting

Canaan’s struggle with Nasdaq’s compliance department began in May 2025. At that time, the company first received a delisting warning due to its stock price persistently falling below $1. It temporarily resolved the crisis thanks to a rebound in Bitcoin’s price. However, the reprieve was short-lived. On January 14, 2026, Nasdaq issued another notice: Canaan’s ADS closing price had remained below $1 for 30 consecutive trading days. The company was required to achieve compliance, meaning a closing price of $1 or higher for 10 consecutive trading days, by July 13.

The initial grace period expired on July 13. Canaan failed to meet the requirement. On July 1, the company urgently transferred its listing from the Nasdaq Global 市场 to the Nasdaq Capital Market, which has relatively lower requirements, and submitted an application for an additional 180 days.

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

According to Nasdaq rules, if compliance is not restored by then, Canaan could ultimately face delisting. The company has stated that it will consider implementing a reverse stock split to boost its share price if necessary, although this is typically viewed by the market as a sign of weakness.

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

Canaan’s stock price slump is not without reason. Its latest financial report reveals the company is in a state of severe financial strain.

On May 19, 2026, Canaan released its unaudited first-quarter financial report: total revenue was $62.7 million, a year-over-year decrease of 24.3% and a sharp sequential decline of 68%; the net loss was $88.7 million, widening from $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 charges – indicating that Canaan had to significantly write down the value of its mining machine inventory, reflecting a sharp contraction in market demand.

More critically, the company’s revenue guidance for the second quarter is only between $35 million and $45 million, suggesting continued pressure on short-term performance. As of March 31, 2026, the company’s cash balance was $43.5 million, a significant decrease 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 its liquidity.

It’s worth noting that despite losses in its core business, Canaan’s 加密currency reserves reached an all-time high: at the end of the first quarter, the company held 1,807.60 Bitcoin (valued at $142 million). These digital assets provide a certain hedge on the balance sheet but also tightly link the company’s performance with 加密currency price volatility.

According to the latest data, Canaan’s Bitcoin reserves have risen to 1,915 BTC, but their total value has dropped to $120 million.

The Shattered 人工智能 Chip Dream and the ‘Pick-and-Shovel’ Dilemma

Canaan’s predicament stems partly from a costly strategic miscalculation.

On June 24, 2025, the company announced the termination of its non-core 人工智能 chip business, fully returning to Bitcoin mining machines and self-operated mining. Its multi-year exploration of a “second growth curve” ended in failure. According to public information, Canaan generated only about $0.9 million in edge computing product revenue in fiscal year 2024, but related business operating expenses amounted to 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 year 2024, this business, which burned cash without generating returns, was decisively cut.

However, returning to its core business hasn’t made things much easier for Canaan. The mining machine industry is facing unprecedented competitive pressure. Compared to rivals like Bitmain, Canaan’s market share continues to be squeezed. In Q2 2025, the company’s total computing power sold was 6.4 million TH/s, a year-over-year increase of only 3%; by Q1 2026, product revenue had plummeted to $42.9 million, a steep drop from $164.9 million in Q4 2024.

Canaan Creative Founder, Zhang Nangeng

The essence of a mining machine manufacturer is selling shovels during a gold rush – its fate is tightly linked to the Bitcoin cycle. When prices are high and mining is profitable, miners are eager to spend on capital equipment; once prices are low and network competition intensifies, demand for mining machines cools rapidly. Since 2025, although Bitcoin prices have shown strength at times, the mining industry has entered a post-halving phase of low marginal returns, severely impacting Canaan’s traditional business model.

Facing the dual pressure of delisting and losses, Canaan’s management is attempting to transition from a pure hardware seller to a computing power infrastructure service provider, seeking a lifeline through vertical integration and energy strategy.

Self-operated mining has become a key lever. 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-over-year increase of 66% and a sequential increase of 10.7%. The company acquired a 49% stake in Cipher Mining’s Texas ABC Projects. Furthermore, the company launched a 3-megawatt mining pilot project in Canada to explore using waste heat from mining machines for greenhouse agriculture, and signed a 4.5-megawatt contract with a Japanese power engineering company to participate in grid load balancing.

On the capital front, in November 2025, Canaan secured a total of $72 million in strategic investments from institutions including BH Digital and Galaxy Digital 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 program, attempting to signal confidence to the market.

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

Conclusion

Canaan’s predicament is a microcosm of the broader crypto mining winter.

Since early 2025, the narrative surrounding the crypto industry in global capital markets has shifted significantly. With the explosive demand for AI computing power, a large amount of capital previously directed towards mining machines and operations has shifted towards AI data centers and high-performance computing. Miners have begun migrating their 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 its product competitiveness.

From a broader perspective, Canaan is undergoing a brutal process of shedding its speculative froth. When it went public in 2019, the company enjoyed a high valuation based on the concept of the first blockchain stock. Now, the market no longer buys into concepts alone but demands tangible cash flow and profitability.

Until the next Bitcoin bull market cycle arrives, the profitability of mining companies will remain under pressure. Canaan must prove, within the next six months, that it possesses the ability to weather the downturn.

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