Recently, I came across a pretty interesting story. China's cryptocurrency mining hardware manufacturer Canaan Creative received a delisting warning from NASDAQ. The stock has been trading below $1 for 30 consecutive trading days and is now around $0.78.

Honestly, the company's situation is a bit sad. They are a Chinese company listed in the U.S. since 2019, mainly engaged in the research, development, and sales of Bitcoin mining machines, and they also operate their own mining business. Last year was particularly tough because many miners shifted to AI computing, leading to a significant drop in demand for mining hardware, and their stock price fell over 60%.

NASDAQ has given them 180 days, until mid-July, to bring the stock price back above $1 to maintain their listing. If they can't, the company said they might apply for an extension, which could include a reverse stock split. A reverse split essentially reduces the number of outstanding shares to make each share appear more valuable.

Interestingly, despite the weak stock price, the company's business is actually improving. In the second half of last year, they secured $72 million in strategic financing and received a large order for 500k units of the latest Avalon A15 Pro mining machines, purchased by a U.S. company. At that time, their stock price surged by 25%. This year, they also launched a mining pilot project in Canada and are even exploring using the heat generated from mining for greenhouse agriculture.

Looking at their financial reports, their third-quarter revenue last year reached $150 million, with mining income hitting a record high. They also hold over 1,600 Bitcoin and nearly 4,000 Ethereum. Their latest A16 series mining machines are being shipped out gradually, and they signed a contract with a Japanese power company for grid regulation services.

So, this situation is a bit contradictory, right? The stock price looks risky, but from a fundamental business perspective, this mining hardware company is actually slowly recovering. The reverse stock split might just be a temporary measure; the key is whether their mining machine sales and self-mining operations can stay strong. If their AI chip restructuring goes smoothly and they refocus on their core business, the stock price might turn around. Anyway, I see this as an ongoing case to watch—how they manage to save themselves.