The block reward mining firm, Bitfarms (NASDAQ: BITF) may witness a possible delisting from Nasdaq if its share price fails to fulfil the $1 threshold over the upcoming six months.
Bitfarms Receives NASDAQ Notification
In its official media report, on Dec. 14, 2022 Bitfarms announced that “it received a written notification from Nasdaq regarding minimum bid price deficiency.”
The mining firm added that “on December 13, 2022 it received a written notification (the “Notification Letter”) from the Nasdaq Stock Market LLC (“Nasdaq”) indicating that, for the last thirty consecutive business days, the bid price for the Company’s common shares (the “Shares”) had closed below the minimum US$1.00 per share requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”).”
Nasdaq has given Bitfarms 180 days—until June 12, 2023—to take its share price back over $1. The exchange will give the company a written notification of compliance if, at any time before then, its share price closes at $1 or above for at least ten consecutive days.
Bitfarms mentioned that “The Nasdaq letter is only a notification of deficiency and has no immediate effect on the listing or trading of the Company’s Shares and the Shares will continue to trade on Nasdaq under the symbol BITF.” However, the firm clarified that the warning from Nasdaq does not affect its listing on the Toronto Stock Exchange.
A spokesperson for Bitfarms noted that the company is confident its fortunes will turn around in spite of the ‘crypto winter.’
“This period is really about the wheat separating from the chaff. We remain bullish on Bitfarms’ and are very excited about the company’s outlook, as well as the future of the [BTC] and cryptocurrency. The current state of both the crypto and [BTC] mining ecosystems is working to reinforce our commitment to the industry,” it noted.
The highlights from Bitfarms’s Q3 report on Nov. 16, 2022 states that “It holds $38 Million of cash and 2,064 BTC. The problem is that 1,724 of these BTC are pledged as collateral, giving the company a total unpledged liquidity of only $44 million.”
Furthermore, on Dec. 16, 2022, Bitfarms announced that it completed the sale of its de la Pointe property, receiving U.S. $3.6 Million in net proceeds.
“Today we closed on the sale of our de la Pointe location and received net cash proceeds of US$3.6 million, as expected,” said Geoff Morphy, President and COO of Bitfarms.
