Emiliano Grodzki, the CEO and co-founder of Bitfarms (a Bitcoin mining firm based in Canada) has stepped down from his place, as per a press release issued on the 29th of December. The mining firm was established by Nicolas Bonta and Emiliano Grodzaki back in 2017. According to the reports, Grodzaki will keep playing the role of the company’s director, while Bonta will occupy the position of the board’s chair.
Bitfarms CEO Steps down, Letting COO Fill the Place
After the resignation of Grodzaki, Geoffrey Morphy (the Chief Operating Officer and President of the firm) has been promoted to the CEO’s post. Morphy, after taking the new post, expressed his comments on the present scenario. He stated that the platform’s emphasis in the current challenging times will be precisely on operating efficiency, corporate governance, and cost controls.
The new CEO also mentioned that the company will pay great attention to establishing a diversified portfolio comprising underutilized sources of energy. According to the executive, this will potentially assist them in elevating their position to get success in all types of environments. The crypto winter has been very harsh on the Bitcoin mining platforms and their regular revenue plummeted to the lowest levels.
Bitfarms is additionally an instance of that situation and a previous couple of quarters. The firm reported a net loss of up to $85M during the 3rd quarter of 2022. Compared to this, it witnessed a $142M loss during this year’s 2nd quarter. Apart from that, the company has been operating on minimizing its debt load. In this respect, back in November this year, it recompensed $27 million worth.
Also read:This was done by the firm to sustain its position in the market. Since January 2022, a loss of up to 90% has been gone through by Bitfarm in its stock value. The Bitcoin miners’ valuations have additionally experienced extended energy charges as well as slumping Bitcoin (BTC) prices. In this case, the overall sentiment in the mining sector got a severe blow caused by the bankruptcy applications submitted by Core Scientific and Compute North.
Apart from that, some other possible bankruptcies are in line such as the Greenidge Generation. Bitfarms is also included in that category. The stock of the Bitcoin mining platform is 92% down this year. The market capitalization of Bitfarms is around just $85 million. The mining company has been attempting to minimize the pressure of its debts to maintain its existence in the industry.
Nasdaq Cautions Bitfarms to Increase Share Price to Be Compliant
The platform, which majorly utilizes hydroelectric power for Bitcoin mining, has up to 10 centers for Bitcoin mining spread across Canada, Argentina, Paraguay, the United States, and Canada. On Thursday, the shares of Bitfarms had a 3.5% upsurge in premarket trading. A couple of weeks ago, a warning was issued by Nasdaq for Bitfarms against its extremely low share price.
As per Nasdaq’s warning notification, which was released on the 13th of December, the share price of Bitfarms had been below the $1 mark for 30 working days consecutively. The miner revealed the news the next day and stated that it had been allowed for the earliest period of nearly 180 regular days to become compliant with the Nasdaq’s requirements. To do this, Bitfarms’ shares require reaching near the $1 mark per share for at least ten consecutive days before the 12th of January.
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