K Wave Media has received an official notice from the Nasdaq Stock Market stating that it has failed to maintain the minimum Market Value of Listed Securities (MVLS). Without swift intervention to steady the ship, the BTC treasury firm could be removed from the Nasdaq stock exchange.
Companies have recently made headlines for buying into the “Bitcoin treasury” trend, holding BTC on their balance sheets to boost shareholder value. However, for companies like K Wave Media and Canaan Inc., the accompanying regulatory compliance is proving harsher than anticipated.
K Wave Media under threat of delisting
K Wave Media (KWM) has become the latest firm to announce a deficiency notice from Nasdaq. A similar notification was sent to Canaan Inc. (CAN) earlier in the month.
K Wave Media, a South Korean-based cultural innovation firm that transitioned into digital asset management, reported that 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 Value of Listed Securities (MVLS) of at least $50 million.
The Nasdaq Stock Market has given K Wave 180 days to comply. Compliance means that the company’s MVLS must close at or above $50 million for at least 10 consecutive business days before the June 2026 deadline.
The company received a previous warning on January 7, when its stock fell below the $1.00 minimum bid price requirement. Currently, K Wave shares are trading around $0.45, a massive drop from their 2025 highs.
Cryptopolitan previously reported that Canaan Inc. also received a notice from the exchange because its American Depositary Shares (ADSs) had traded below $1.00 for 30 consecutive business days. Canaan has a July 13 deadline to fix the price deficiency.
If it fails, it may have to resort to a reverse stock split or face removal from the exchange.
What options do BTC treasury firms have to avoid delisting?
For companies like K Wave and Canaan, the most common “quick fix” for a minimum bid price deficiency is a reverse stock split, which involves reducing the number of outstanding shares to artificially increase the price of each remaining share.
However, when Digital Currency X Technology (DCX), a digital asset treasury firm with over $1.4 billion in reported BTC holdings, was notified on January 20 that it is scheduled for delisting on January 29, the company was denied the standard 180-day grace period because it had already performed multiple reverse splits in the past two years.
K Wave Media has already appointed a new Chief Financial Officer, Yong Fang, to navigate these “complex financial landscapes.” The company has stated that it remains committed to its long-term strategy and is evaluating all available options to restore compliance.
Canaan has also said it will take “ reasonable measures” to maintain its status.
Deficiency notices are becoming increasingly common as Bitcoin itself remains strong, but the stocks of the companies with “Bitcoin treasuries” often suffer from high volatility and liquidity issues.
In December 2025, the Bitcoin treasury firm Kindly MD (NAKA) received a similar notice and has until June 2026 to bring its stock price back above $1.00.
Strive (ASST), which recently completed its acquisition of Semler Scientific on January 16, 2026, to become the 11th-largest public holder of Bitcoin, saw its shares tumble below $0.90 shortly after the merger. Despite holding over 12,797 BTC, Strive’s stock has declined nearly 80% since September 2025.
Massive firms like Strategy (MicroStrategy) continue to grow, now holding 709,715 BTC, which it acquired for $53.92 billion at an average price of $75,979 per Bitcoin as of January 20.
On the other end of the spectrum, smaller firms are struggling to maintain the market capitalization and share price required by major exchanges.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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