By George Ward
Bitfarms, a Canadian BTC mining company, is facing compliance issues over its Nasdaq listing due to the present crypto winter. On December 13th, the crypto firm received a warning from Nasdaq.
According to Nasdaq, Bitfarms shares have remained below $1 for 30 successive working days. Bitfarms announced the notice from Nasdaq on December 14th, citing that it has 180 days to comply.
Based on the warning notice, the company’s share price on Nasdaq must close at $1 for at least ten consecutive days before June 12th, 2023. If Bitfarms can achieve this, Nasdaq will notify the crypto miner that it has regained compliance.
However, Bitfarms noted that the final limit is not 180 days. Hence, the company can extend the probation period after it expires on June 12th.
“If the firm fails to regain compliance according to 5550(a)(2) by June 12th, 2023, we are eligible for an extra 180 days,” Bitfarms argued.
Additionally, the miner emphasized that Nasdaq’s letter is merely a notice. Hence, it would have no instant impact on the trading or listing of Bitfarms shares (BITF) on the Nasdaq exchange.
A Bitfarms representative further stated that Bitfarms’ shares could face delisting if the company does not comply with Nasdaq’s demands for primary equity securities. Meanwhile, another representative argued that Bitfarms has other remedies for its BITF shares.
Nevertheless, the company remained optimistic about the crypto sector despite the market’s volatility fueled by recent events such as the FTX collapse.
Bitfarms Shares Still Trading On Toronto Stock Exchange
Meanwhile, a spokesperson for the company noted that the workers are optimistic about the Canadian firm and believe it would bounce back. Furthermore, Bitfarms said its shares are still trading on the Toronto Stock Exchange.
Hence, it assured its shareholders and supporters that Nasdaq’s warning would not affect its business activities. Bitfarms shares started trading on the Nasdaq exchange in June 2021 after the company’s shares went public on Toronto’s stock exchange three months earlier.
Bitfarms’ share price reached an ATH of about $6 last December on the Nasdaq. Unfortunately, the price has been declining since then due to the ongoing crypto market winter.
Per TradingView data, the miner’s shares went below $1 in October. Since then, the price has failed to retest the $1 mark. Bitfarms is among the crypto mining firms suffering from the bearish crypto market.
In June, the company had to sell some part of its self-mined BTC worth over $62 million to pay off part of its debt. Other miners that have sold their minted BTC during the crypto winter include Riot Blockchain, Core Scientific, and Argo Blockchain.