Bitfarms received a warning notification from the Nasdaq stock exchange after the bitcoin miner’s share price closed below $1 for thirty consecutive days. Nasdaq offered Bitfarms an initial period of 180 calendar days, or until June 12, 2023, to drive its stock price back up or risk getting delisted.
Nasdaq Provides Bitfarms With 180 Days to Regain Compliance
Bitcoin mining firm Bitfarms announced it received written notification from the Nasdaq stock exchange after its share price closed below the minimum requirement of $1 per share for the last 30 consecutive days. Under the terms of the Nasdaq Listing Rule, the exchange has provided Bitfarms with an initial period of 180 calendar days to “regain compliance.”
This means that Bitfarms is required to get its stock price up above $1 until June 12, 2023. However, Nasdaq noted in its notification that the share price must stay above that threshold for a minimum of ten consecutive business days.
“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.’”
Bitfarms Receives NASDAQ Notification Regarding Minimum Bid Price Deficiency
Meanwhile, Bitfarm’s shares are also listed on the Toronto Stock Exchange (TSX), the largest stock bourse in Canada. Nasdaq said the notification does not affect its compliance status with its TSX listing nor its “business operations or financial condition.”
Bitfarms could face delisting from the Nasdaq if it fails to regain compliance. However, Bitfarms could also file a request for an extension of its current deadline and ask for more time to drive its stock price.
The crypto miner’s shares are trading at $0.54 apiece on the Nasdaq at the time of the writing. Earlier this year, the firm’s shares spiked to $1.39 per share after the company sold 3,000 BTC to fund operations and growth.
Bitcoin Could Drop to $10K in Q1 2023 Amid Miner Capitulations, Says Investment Giant
Nasdaq’s warning comes roughly a month after Bitfarm’s stock plummeted following the crypto miner’s Q3 2022 financial results. The report noted a 26% year-over-year revenue decline to $33.2 million.
The company also reported a gross margin loss of 12% due to higher costs, while its gross mining margin shrank to 52%, reflecting the sharp decline in Bitcoin’s price. The world’s biggest crypto token is down more than 60% this year amid a broader crypto market downturn triggered by tough macroeconomic conditions involving inflation, recession fears, and the collapses of several major crypto firms.
Investment giant VanEck provided a 2023 outlook, saying Bitcoin could drop to as low as $10,000 in the first quarter of 2023 as several mining firms face bankruptcies. The firm’s head of digital assets, Matthew Sigel, said BTC could “test $10,000-$12,000 in Q1 amid a wave of miner bankruptcies, which will mark the low point of the crypto winter.”
This article originally appeared on The Tokenist
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