Bitfarms could face delisting risks if it fails to recover its stock price above $1 per share, this is a warning by the Nasdaq stock exchange
Due to the current cryptocurrency winter, Bitfarms, a Canadian bitcoin mining company, is having compliance issues with its Nasdaq listing. On December 13, Nasdaq sent Bitfarms a warning letter because the company’s stock price had fallen below $1 for 30 straight working days.
The bitcoin mining firm stated that it has a first window of 180 calendar days to go back in compliance with Nasdaq criteria in an announcement made on December 14. Bitfarms’ shares must close at $1 per share for a least of 10 straight days, at any point before June 12, 2023, in order to restore compliance.
The release states that in such a case, the Nasdaq staff would inform Bitfarms in writing that compliance has been attained. However, the 180-day timeframe is not the absolute maximum. Even after June 12, Bitfarms stated that it will have the opportunity to further prolong the compliance period:
“If the company does not regain compliance with Rule 5550(a)(2) by June 12, 2023, the company may be eligible for an additional 180 calendar day compliance period.”
The Bitfarms shares will continue to trade on the exchange, and the business emphasized that the Nasdaq letter is merely a notification and has no immediate impact on the listing or trading.
Furthermore, the bitcoin mining firm stated that the firm’s compliance with such listing and business activities are unaffected by the most recent Nasdaq notification and that the company will continue to be listed on the Toronto Stock Exchange.
In June 2021, just a few months after going public on the Toronto Stock Exchange in April, Bitfarms made its Nasdaq stock trading debut, as previously reported.
The Bitfarms stock has been steadily losing value on Nasdaq since hitting an all-time high of approximately $6 in December 2021. This decline is consistent with the current bear market in cryptocurrencies.
Bitfarms’ shares fell below $1 in late October 2022, according to TradingView data, and haven’t tested the $1 price level since. On December 13, the bitcoin mining firm’s stock finished at $0.54, up 7.6% on the day.
One of the mining operations for cryptocurrencies dealing with serious problems as a result of the continuing market turmoil is Bitfarms. The company was compelled to sell self-mined Bitcoin worth around $62 million in June in order to pay off its debt.
In light of the challenging market conditions, a number of other mining companies, including Argo Blockchain, Core Scientific, and Riot Blockchain, have decided to sell their Bitcoin. Argo Blockchain revealed on December 12 that it has been thinking about selling its assets in order to avoid declaring bankruptcy.
