17 October 2022 06:54, UTC
Studying time: ~3 m
Nasdaq has threatened to delist bitcoin miner Digihost for buying and selling beneath $1 for 30 consecutive days, the newest mining firm to slide into the hazard zone for corporations that hope to maintain their spots on main U.S. inventory exchanges.
“The Firm’s enterprise operations usually are not affected by the receipt of the Notification Letter and the Firm totally intends to resolve the deficiency and regain compliance with the Nasdaq Itemizing Guidelines,” Digihost mentioned in a doc filed Friday with the U.S. Securities and Trade Fee. The miner has 180 days to regain compliance with Nasdaq itemizing guidelines by buying and selling for $1 or extra for a interval of not less than 10 consecutive days. Nevertheless, it could be eligible for an extra 180 compliance interval, the submitting mentioned.
Because of a number of components contributing to a downturn within the bitcoin mining trade, Digihost is barely the newest firm to see its inventory itemizing put in jeopardy.
Two different public miners — Mawson Infrastructure Group and BIT Mining — additionally want higher inventory efficiency to maintain their listings on Nasdaq and the New York Inventory Trade (NYSE), respectively.
Prior to now week alone three different bitcoin mining shares fell beneath the $1 threshold, whereas a handful of others are buying and selling solely barely above that. Inventory costs for corporations tracked by The Block fell considerably over the previous week of buying and selling. That would put extra in peril of delisting, if the inventory worth does not recuperate to over $1 per share.
Bitcoin mining shares are inclined to comply with the coin’s worth, which has plunged 70% for the reason that all-time excessive of round $67,550 in November of final yr and about 50% within the final six months. This decline, mixed with rising energy prices, has squeezed income for bitcoin miners, which have additionally needed to deal with mining problem leaping 13.55% final week to an all-time excessive.
Management for the Australia-based Mawson Infrastructure Group projected confidence in sustaining the corporate’s place on Nasdaq.
“Per the 8-Okay, if we commerce above $1 for 10 days the difficulty is cured, or we are able to merely do a reverse cut up to remedy, so we’re not frightened about that,” Nick Hughes-Jones, chief industrial officer on the firm, instructed The Block final month.
The corporate bought one in all its amenities in Georgia to rival CleanSpark, stating that it could deal with its Pennsylvania and Texas websites, the place it sees “the chance for compelling returns on capital,” mentioned Mawson CEO James Manning.
BIT Mining additionally sought to reassure buyers in August that its inventory would recuperate.
“Regardless of the tumultuous market circumstances, relaxation assured that the present inventory worth could have no affect on our firm’s regular enterprise operations and our capacity to create worth for our buyers sooner or later,” mentioned BIT Mining Chairman Bo Yu mentioned in a press release on the time.