Record Sales Fail to Lift Shares from $0.56 Low
Canaan Inc. announced a significant operational upswing in its fourth-quarter results, yet failed to impress investors. The company's revenue grew 121.1% year-over-year to $196.3 million, its highest quarterly figure in three years. This performance was powered by record sales of mining hardware, with Canaan shipping an unprecedented 14.6 exahashes per second (EH/s) of computing power, boosted by a milestone order from an unnamed US-based institutional miner.
Beyond hardware, the firm’s direct mining operations also strengthened. Bitcoin mining revenue climbed 98.5% from the previous year to $30.4 million. This success helped expand Canaan's corporate treasury to a record 1,750 BTC, currently valued at nearly $120 million, along with 3,950 ETH worth approximately $7.9 million. Despite these robust fundamentals, the market delivered a decisively negative verdict.
Delisting Clock Ticks as Stock Declines 70% Annually
The market's reaction sent Canaan's shares down 6.9% to a closing price of $0.56 on Tuesday, making it one of the worst performers among major publicly-traded Bitcoin miners. The stock is now down 18.1% year-to-date and has lost 70.2% of its value over the past 12 months, moving it further away from compliance with Nasdaq listing requirements.
On January 16, Canaan received a formal warning from the Nasdaq stock exchange for failing to meet its minimum bid price rule. The company has a 180-day window, ending on July 13, to achieve a closing price of at least $1.00 for a minimum of 10 consecutive business days. With its stock trading near all-time lows, the risk of a delisting, which would severely impact liquidity and investor confidence, has grown substantially.
