Nasdaq warns Bitcoin mining company Bitfarms about lack of share price
Canadian Bitcoin (BTC) mining company Bitfarms is facing compliance challenges related to its Nasdaq listing due to the ongoing cryptocurrency winter.
Bitfarms received a warning from Nasdaq on December 13 because the company’s share price has remained below $1 for 30 consecutive business days.
Bitfarms announced the news on December 14, saying it has an initial period of 180 calendar days to regain compliance with Nasdaq requirements.
To regain compliance, Bitfarms’ stock should close at $1 per share for a minimum period of 10 consecutive days at any time prior to June 12, 2023. In such event, Nasdaq staff will provide written notice to Bitfarms that they have achieved compliance, notes the announcement.
However, the 180-day period is not the final limit. Bitfarms noted that it will have a chance to further extend the compliance period even beyond June 12, staging:
“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 company emphasized that the Nasdaq letter is a notification only and has no immediate effect on the listing or trading as Bitfarms shares (BITF) will continue to trade on the exchange.
Bitfarms also noted that the company remains listed on the Toronto Stock Exchange and the latest announcement from Nasdaq has no impact on the firm’s compliance status with such listing or its business operations.
As previously reported by Cointelegraph, Bitfarm’s shares debuted on the Nasdaq in June 2021, just a few months after they went public on the Toronto Stock Exchange in April.
After reaching an all-time high of around $6 in December 2021, BITF stock has gradually sold off on the Nasdaq, in line with the ongoing cryptocurrency bear market.
Related: BTC difficulty falls by the largest margin since 2021
According to data from TradingView, Bitfarms’ shares fell below $1 in late October 2022 and have not retested the $1 price since. Bitfarms’ stock closed at $0.54 on December 13, seeing a 7.6% intraday gain.
Bitfarms is one of many cryptocurrency mining companies facing major problems due to the ongoing crisis in the market. In June, the firm was forced to sell about $62 million worth of self-mined Bitcoin to reduce debt. A number of other mining companies, including Argo Blockchain, Core Scientific and Riot Blockchain, also opted to sell their Bitcoins amid tough market conditions.
On December 12, Argo Blockchain said it has considered selling its assets to avoid filing for bankruptcy.
