K Wave Media has received an official communication from the Nasdaq Stock Market indicating that it has not met the minimum Market Value of Listed Securities (MVLS). If corrective measures are not taken promptly, this BTC treasury firm risks being delisted from the Nasdaq stock exchange.
Recently, various companies have garnered attention for embracing the “Bitcoin treasury” strategy, which involves holding BTC on their balance sheets to enhance shareholder value. However, firms like K Wave Media and Canaan Inc. are finding that compliance with regulatory requirements is more challenging than they had anticipated.
K Wave Media Faces Delisting Threat
K Wave Media (KWM) is now among those firms to receive a deficiency notice from Nasdaq. Earlier this month, a similar notification was issued to Canaan Inc. (CAN).
This South Korean cultural innovation company, which has shifted its focus towards digital asset management, reported receiving a written notice dated January 22, 2026. The notice states that it is no longer in compliance with Nasdaq Listing Rule 5810(c)(3)(C).
This specific rule mandates that companies listed on the Nasdaq Global Market maintain an MVLS of at least $50 million.
The Nasdaq Stock Market has granted K Wave a period of 180 days to rectify this situation. To comply, the company’s MVLS must remain at or above $50 million for at least ten consecutive business days before the June 2026 deadline.
The company had previously been warned on January 7 when its stock price fell below the required minimum bid price of $1.00. Currently trading around $0.45 per share represents a significant decline from its highs in 2025.
Cryptopolitan previously reported that Canaan Inc., too, received an alert from the exchange due to its American Depositary Shares (ADSs) trading below $1.00 for thirty consecutive business days; they face a July 13 deadline to address this pricing issue.
If they do not resolve it by then, they may need to consider implementing a reverse stock split or risk removal from trading altogether.
What Solutions Do BTC Treasury Firms Have Against Delisting?
For companies such as K Wave and Canaan facing bid price deficiencies, one common quick remedy is executing a reverse stock split—this process reduces outstanding shares while artificially boosting each remaining share’s price.
A notable case occurred when Digital Currency X Technology (DCX), which manages over $1.4 billion in reported BTC, was informed on January 20 about its impending delisting scheduled for January 29; DCX was denied standard grace periods due to having conducted multiple reverse splits within two years prior.
K Wave Media has appointed Yong Fang as their new Chief Financial Officer tasked with navigating these complex financial challenges ahead of them while reaffirming their commitment toward long-term strategies and exploring all options available for regaining compliance status.
Canaan also stated intentions to take “reasonable measures” aimed at preserving their listing status amidst these challenges faced by many Bitcoin treasury firms experiencing increased scrutiny despite Bitcoin’s robust performance itself; however stocks belonging to these entities often encounter volatility and liquidity issues hindering stability.
In December of last year alone Kindly MD (NAKA), another Bitcoin treasury firm found itself similarly notified needing until June next year regain share prices exceeding dollar thresholds again after falling short recently.
Strive ASST completed acquisition Semler Scientific just weeks ago becoming eleventh largest public holder Bitcoins but saw own shares plunge beneath ninety cents shortly thereafter—despite holding over twelve thousand seven hundred ninety-seven bitcoins Strive’s market value plummeted nearly eighty percent since September twenty-five.
Conversely larger corporations like MicroStrategy continue thriving now boasting holdings totaling seven hundred nine thousand seven hundred fifteen bitcoins acquired averaging seventy-five thousand nine hundred seventy-nine dollars each resulting total investment exceeding fifty-three billion dollars as noted earlier this month!
Smaller players struggle though maintaining necessary market caps alongside required pricing levels set forth major exchanges remains increasingly difficult!