K Wave Media has found itself in a precarious situation as it received an official notice from the Nasdaq Stock Market indicating that it has not maintained the minimum Market Value of Listed Securities (MVLS). Without immediate action, this BTC treasury firm could be removed from the exchange.
In recent times, various companies have gained attention for adopting the “Bitcoin treasury” strategy, where they hold BTC to enhance shareholder value. However, regulatory compliance has proven to be more challenging than anticipated for firms such as K Wave Media and Canaan Inc..
K Wave Media, a South Korean cultural innovation company that shifted towards digital asset management, reported receiving a notice dated January 22, 2026, stating its non-compliance with Nasdaq Listing Rule 5810(c)(3)(C). This rule mandates that companies listed on the Nasdaq Global Market must uphold a minimum MVLS of at least $50 million.
The Nasdaq has provided K Wave with a 180-day window to rectify the situation. To comply, the company”s MVLS must remain at or exceed $50 million for a minimum of 10 consecutive business days before the June 2026 deadline. Earlier, on January 7, K Wave received a warning when its stock dipped below the $1.00 minimum bid price requirement. Currently, K Wave shares are trading at approximately $0.45, a significant decline from their highs in 2025.
Earlier this month, Canaan Inc. also received a deficiency notice from Nasdaq due to its shares trading below $1.00 for 30 consecutive business days. Canaan has until July 13 to address this price deficiency. Failing to do so may force the company into a reverse stock split or potential delisting.
The most prevalent solution for companies facing minimum bid price deficiencies is a reverse stock split, which reduces the number of outstanding shares to artificially inflate the price per share. However, Digital Currency X Technology (DCX), which holds over $1.4 billion in reported BTC assets, was denied the typical 180-day grace period after being notified on January 20 about its impending delisting. This denial was due to DCX”s prior reverse splits within the past two years.
K Wave Media has taken proactive steps, appointing a new Chief Financial Officer, Yong Fang, to navigate these complex financial challenges. The firm has expressed its commitment to its long-term strategy and is currently exploring all options to ensure compliance. Likewise, Canaan has indicated that it will implement “reasonable measures” to maintain its exchange listing.
Deficiency notices have become increasingly frequent, even as Bitcoin remains robust. Yet, companies holding “Bitcoin treasuries” often encounter volatility and liquidity issues affecting their stock performance. In December 2025, another firm, Kindly MD (NAKA), received a similar notice and has until June 2026 to restore its stock price above $1.00. Meanwhile, Strive (ASST), which recently acquired Semler Scientific, saw its shares plummet below $0.90 shortly after the merger, despite holding over 12,797 BTC. In stark contrast, major players like MicroStrategy continue to thrive, now holding 709,715 BTC at an average acquisition price of $75,979 per coin.
As smaller firms grapple with maintaining the necessary market capitalization and share price for major exchanges, the landscape for companies involved in cryptocurrency continues to evolve, underscoring the necessity for robust financial strategies in a volatile market.
