Singapore-based crypto mining rig manufacturer Canaan received a delisting notice from Nasdaq as its share price stayed below the minimum threshold of $1 for 30 consecutive days. Nasdaq has granted a 180-day grace period for the company to raise its share price. Canaan must close at $1 or higher for 10 consecutive trading days before the grace period ends on July 13 to avoid getting kicked off the stock exchange.
Canaan’s shares dropped 3.82% today to $0.78. The AI boom and the swift growth of data centers all around the world have significantly reallocated resources from crypto mining rigs to AI infrastructure. Many existing miners are repurposing their infrastructure to cater to the growing demand for AI, rendering crypto mining rigs possibly obsolete in the future.
The Canaan Paradox: Record Sales vs. Crashing Shares
Canaan’s total revenue grew 104.4% year-over-year and surpassed $150 million in 2025. This clearly signals that the Bitcoin mining rigs are not only in demand but are also on the rise. This can appear paradoxical given the plummeting stock price of the firm. This is because investor confidence is a stronger causal factor in the market when compared with the actual company revenue.
Canaan is selling more rigs than they ever did, and their revenue is at new heights. Yet, the company is unsuccessful in earning investor confidence since the general tech-trend seems to indicate that crypto mining rigs risk being obsolete in the near future.
What Does Canaan Make and Why Does It Risk Being Obsolete?
Canaan is famous for making the world’s first ASIC (Application-Specific Integrated Circuit) for Bitcoin mining. The company now mainly sells its flagship product, Avalon miner, a powerful computer specialised in solving the SHA-256 puzzle to gain a Bitcoin reward.
The “specialization” means that these rigs are hardwired to do only one thing (mining) and can’t be repurposed to do anything else. Moreover, the bitcoins you get for doing the same work are cut in half every four years. Hence, profit per unit of electricity used by the rig decreases over the years. Additionally, when better mining rigs are introduced, the older ones essentially become bricks that can’t be used for anything else.
Analysts Project 261% Upside for Canaan Shares: Average Target Price at $2.85
Major analysts on Wall Street reiterated a buy signal for Canaan as they see an average 261.31% upside. Northland Securities’ top analyst Michael Grondahal sees 121.86% upside and sets a target price of $1.75, while Gregory Lewis from BTIG sees 280.32% upside and sets a target price of $3. Moreover, the firm has a revenue estimate of $175.59 million for 2026.
Despite analyst projections, record revenues, high revenue predictions for 2026, and high sales of bitcoin mining rigs, investor confidence seems not to sway in favour of Canaan as of now. This is yet another case of how companies that perform well in the real world can still have weaker performance in the market.
What Happens Now?
Canaan must keep the price of its share above $1 for 10 consecutive days before the Nasdaq grace period ends on July 13. They may pursue different strategies to make this possible. The company may use its cash reserves to buy back its own shares to reduce supply. Moreover, Canaan may announce expansion beyond mining rigs and into AI computation. This can counter the “Obsolescence” narrative and win back investor confidence.
The company can also ‘reverse stock split’ (Combine multiple cheap shares into one expensive share) as a last resort to increase the stock price artificially. Canaan might also ask for a grace period extension from Nasdaq. A reverse stock split and grace period extension will only postpone consequences, while expansion beyond mining rigs remains the viable solution in the long run.
