K Wave Media has received a formal notice from the Nasdaq Stock Market of failure to maintain minimum market capitalization of listed securities (MVLS). Without prompt intervention to stabilize the ship, BTC The financial company could be removed from the Nasdaq stock exchange.
Companies have recently made headlines for capitalizing on the “Bitcoin Finance” trend. BTC Recorded on the balance sheet to increase shareholder value. But for companies like K Wave Media and Canaan Inc., the regulatory compliance involved has proven to be tougher than expected.
K Wave Media under threat of delisting
K Wave Media (KWM) has become the latest company to be issued a defect notice by Nasdaq. A similar notice was sent to Canaan Inc. (CAN) earlier this month.
K Wave Media is a South Korea-based cultural innovation company that has transitioned into digital asset management. reported The company said it received a written notice dated January 22, 2026 stating that it is no longer in compliance with Nasdaq Listing Rule 5810(c)(3)(C).
This rule requires companies listed on the Nasdaq Global Market to maintain a minimum market capitalization of listed securities (MVLS) of at least $50 million.
The Nasdaq Stock Market gave K-Wave a 180-day compliance period. Compliance means the company’s MVLS must complete transactions of at least $50 million for at least 10 consecutive business days by the June 2026 deadline.
The company received a previous warning on January 7, when the stock price fell below the minimum bid price requirement of $1.00. K Wave stock is currently trading around $0.45, a significant drop from its 2025 highs.
Formerly Cryppolitan reported Canaan also received a notice from the exchange because its American Depositary Shares (ADS) had been trading below $1.00 for 30 consecutive business days. Canaan has set a July 13 deadline to correct the price shortfall.
If it fails, it may have to resort to a reverse stock split or be kicked off the exchange.
Option contents BTC Should the Ministry of Finance avoid delisting?
For companies like K Wave and Canaan, the most common “quick fix” to minimum bid shortfalls is a reverse stock split, which involves reducing the number of outstanding shares and artificially increasing the price of each remaining share.
However, when Digital Currency X Technology (DCX), a digital asset treasury firm with over $1.4 billion in assets, reported, BTC Holdings was notified on January 20 that it was scheduled to be delisted on January 29, but the standard 180-day grace period was not granted because the company had already undergone multiple consolidation splits in the past two years.
K Wave Media has already appointed a new chief financial officer, Yong Fang, to help navigate these “complex financial circumstances.” The company says it remains committed to its long-term strategy and is evaluating all available options to regain compliance.
Canaan also said it would take “reasonable steps” to maintain its position.
While scarcity notices are increasingly common as Bitcoin itself continues to perform well, stocks of companies that hold “Bitcoin Treasuries” often suffer from high volatility and liquidity issues.
In December 2025, Bitcoin treasury company Kindly MD (NAKA) received a similar notice requiring its stock price to return above $1.00 by June 2026.
Strive (ASST) completed its acquisition of Semler Scientific on January 16, 2026, becoming the 11th largest public holder of Bitcoin, but the stock price fell below $0.90 shortly after the merger. Despite having more than 12,797 BTCStrive stock has fallen nearly 80% since September 2025.
Large companies like Strategy (MicroStrategy) are still growing Number of possessions: 709,715 BTCacquired for $53.92 billion as of January 20, at an average price of $75,979 per Bitcoin.
At the other end of the spectrum, sMall companies have struggled to maintain the market capitalization and stock prices required by major exchanges.
