Mining company Bitfarms received notification from Nasdaq of a possible delisting for violating its rules.
The company’s shares had closed for 30 consecutive days below the $1 threshold. Now Bitfarms, for the 180-calendar-day period ending 12 June 2023, must regain compliance with the standards in order to continue trading on the NASDAQ platform.
The company emphasised that the Nasdaq letter is a warning and does not affect trading of the company’s shares. Bitfarms is also listed on the Toronto Stock Exchange.
In early 2022, the company’s share price reached $5.22. From that level the stock had fallen about 89%. As of writing, premarket values the shares at $0.57.
During this period, comparable declines in prices were shown by most public mining companies. For example, Argo Blockchain’s fell by 97% — from $1.225 to $0.045.
On Friday, December 9, the exchanges halted trading of the company’s shares after an erroneously published bankruptcy filing. Argo Blockchain said it did not intend to declare insolvency and is seeking additional financing.
Despite the clarifications, when trading resumed on December 13, the shares closed the session down more than 40% from the opening price of $0.077.
In late October warned of liquidity problems and possible cessation of operations. The firm was unable to complete a £24 million sale of shares.
Bitfarms, for the third quarter, posted a net loss of $85 million versus $142 million in the prior period.
In June the company was among the leaders of massive liquidations of its bitcoin reserves by public miners, with its selling volume trailing only Core Scientific.
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