Block reward mining firm Bitfarms could be delisted from Nasdaq if its share price fails to achieve the $1 threshold in the next 180 days. The firm said it received a letter from Nasdaq informing that its shares have traded below the required price threshold for listing since mid-October. At the time of writing, Bitfarms shares are trading at $0.6.
Bitfarms has until 11th June 2023 to drive up its shares to over $1. In the letter, Nasdaq said it would send the firm a written compliance notification if, at any time before the deadline, its share price crosses the $1 mark and trades above that for a minimum of ten consecutive days.
The Bitfarms spokesperson is optimistic that the firm’s fortunes will turn around despite the ongoing crypto bears. He says this period is more about separating the wheat from the chaff and that he is bullish on Bitfarms and the future of crypto.
Ongoing Crypto Winter Affects Bitfarms’ Ability to Service Loans
The BTC miner continues to offload more Bitcoins in its reserves as the ones it mines have proved insufficient to cover its debts obligation and daily operating costs. For example, in quarter 3, Bitfarms mined over 1,500 Bitcoins but ended up selling about 2,500, with the extra BTC coming from the reserve.
Also read:Bitfarms continues to service loans that it gave Bitcoins as collateral, and considering the current price dip, the firm has to add onto that collateral. Jaran Mellerud, a block reward mining analyst, claims that Bitfarms must maintain a collateral value of about 120% of the loan.
The analyst says that currently, Bitfarms holds 2,061 Bitcoins and about $40 million in cash. However, the problem is that 1,719 Bitcoins are pledged as collateral, leaving the firm with an unpledged liquidity of just $43 million.
More Bitcoin Miners Struggle With Crypto Bears
Bitfarms is among the many block reward miners affected by this year’s crypto bear market. Most firms are close to filing for bankruptcy as they struggle to repay loans that they offered bitcoins as collateral. A few weeks ago, Argo Blockchain announced selling part of its assets to strengthen its liquidity.
However, despite the sale, Argo Blockchain revealed it was unlikely to evade bankruptcy. Another affected miner is Core Scientific, which is considered the top Bitcoin miner by hash rate. In October, the firm announced it could file for bankruptcy if it fails to improve its financial situation.
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