On December 13, Nasdaq sent Bitfarms a warning letter because the company’s stock price had fallen below $1 for 30 straight working days.
Bitfarms stated that it has a first window of 180 calendar days to get back in compliance with Nasdaq requirements in an announcement made on December 14.
Bitfarms’ shares must close at $1 per share for a minimum of 10 straight days, at any time before June 12, 2023, in order to regain compliance. The announcement states that in such a case, the Nasdaq staff will inform Bitfarms in writing that compliance has been attained.
However, the 180-day period is not the absolute maximum. Even after June, according to Bitfarms, it will be possible to extend the compliance period.
“The Company may be eligible for an additional 180 calendar day compliance period,” the rule reads. “If the Company does not regain compliance with Rule 5550(a)(2) by June 12, 2023.”
The Bitfarms shares (BITF) will continue to trade on the exchange, and the company emphasised that the Nasdaq letter is only a notification and has no immediate impact on the listing or trading.
Furthermore, Bitfarms stated that the firm’s compliance with such listing and business operations are unaffected by the most recent Nasdaq notice and that the company will continue to be listed on the Toronto Stock Exchange.
In June 2021, just a few months after going public on the Toronto Stock Exchange in April, Bitfarms made its Nasdaq stock trading debut, as Cointelegraph previously reported.
The Bitfarms stock has been steadily declining on Nasdaq since hitting an all-time high of approximately $6 in December 2021, in line with the ongoing bear market for cryptocurrencies.
Bitfarms’ shares fell below $1 in late October 2022, according to TradingView data, and haven’t tested the $1 price level since. On December 13, Bitfarms’ stock closed at $0.54, up 7.6% on the day.
One of many mining operations for cryptocurrencies dealing with serious problems as a result of the ongoing market crisis is Bitfarms. The company was compelled to sell self-mined Bitcoin worth about $62 million in June in order to pay off its debt. In light of the challenging market conditions, a number of other mining companies, including Argo Blockchain, Core Scientific, and Riot Blockchain, also decided to sell their Bitcoin.
Argo Blockchain revealed on December 12 that it has been thinking about selling its assets in order to avoid declaring bankruptcy.