Bitcoin Mining Company Bitfarms Receives Delisting Warning From Nasdaq

Cryptocurrency mining company Bitfarms announced Wednesday that it had received a warning from Nasdaq Stock Market LLC that it was not in compliance with its minimum bid price requirements. 

The Canadian-based publicly traded company became non-compliant with the Nasdaq Listing Rule 5810(c)(3)(A) when its shares, BITF, dropped below the $1 closing mark for common equities listed on the stock exchange for 30 consecutive days. 

BITF closed at around 0.5 cents on Wednesday after reaching $6 per share in February 2021. The decline is presumably caused by the current market downturn, which saw Bitcoin (BTC) record a new low of $15,000. 

No Effects on Trading

The Bitcoin mining firm disclosed that the Nasdaq warning had no immediate effect on trading the assets on the global platform, noting that it was only a compliance deficiency. 

However, Nasdaq has given the company an initial period of 180 days ending June 12, 2023, to have its shares trade at or above the $1 per share requirement for a minimum of 10 business days to regain compliance.  

Bitfarms will also have the opportunity to extend the 180-day window to an additional 180 days if the shares fail to improve within the first grace period or face delisting. 

Business Operations and Financial Conditions 

Suppose the company regains its minimum bidding position before the given date. In that case, Nasdaq will issue another notification letter indicating that the firm has recovered and will continue trading on its platform. 

“The letter states that the Nasdaq staff will provide written notification that the Company has achieved compliance with Rule 5550(a)(2) if at any time before June 12, 2023, the bid price of the Company’s Shares closes at US$1.00 per share or more for a minimum of ten consecutive business days,” Bitfarms said. 

The Canadian-based mining firm also noted that the warning from Nasdaq did not affect its shares listed on the Toronto Stock Exchange. LlgllAdditionally, Bitfarms said the latest developments would not affect its financial conditions or business operations. 

The self-mining company, launched in 2017, has up to 10 mining facilities in different locations, including Canada, the United States, Paraguay, and Argentina, powered by environmentally friendly hydroelectric energy.