Canaan, a prominent cryptocurrency miner and manufacturer, finds itself in a paradoxical situation. Despite reporting a remarkably strong fourth quarter, with revenues soaring and operational metrics hitting new highs, its stock continues a dramatic decline, placing the company in a precarious position with Nasdaq.
Stellar Fourth Quarter Performance
Canaan announced an impressive 121.1% year-over-year revenue increase in Q4, reaching $196.3 million – its highest quarterly revenue in three years. This significant growth was fueled by robust hardware sales, including a record shipment of 14.6 exahashes per second (EH/s) of computing power, partly driven by a substantial order from a US institutional miner. The company also saw its Bitcoin (BTC) mining revenue surge by 98.5% year-over-year to $30.4 million, bolstering its crypto treasury to a record 1,750 BTC (valued at nearly $120 million) and increasing its Ether (ETH) holdings to 3,950 ETH. Furthermore, Canaan expanded its installed hashrate to 9.91 EH/s, with 7.65 EH/s actively operational during the quarter.
Stock Plunge and Nasdaq Delisting Woes
Despite these stellar financial achievements, Canaan's stock performance tells a starkly different story. The company's shares plunged by nearly 7% following the earnings report, continuing a troubling trend that has seen its value drop 18.1% year-to-date and a staggering 70.2% over the past 12 months. Trading at just $0.56, Canaan is now among the worst performers of major Bitcoin miners by market capitalization. This dramatic decline has triggered a severe warning from Nasdaq, informing Canaan that it risks delisting if its stock price does not recover above the $1 minimum bid price. The company has until July 13 to meet this requirement, needing its closing price to exceed $1 for at least ten consecutive trading days – a threshold it last met in late November 2023.
