The Canadian Bitcoin (BTC) mining firm Bitfarms is facing compliance challenges over its listing on Nasdaq due to the ongoing cryptocurrency winter.
Bitfarms received a warning notification from Nasdaq on Dec. 13 because the company’s share price has stayed below $1 for 30 consecutive working days.
Announcing the news on Dec. 14, Bitfarms said that it has an initial period of 180 calendar days to regain compliance with the requirements from Nasdaq.
In order to regain compliance, Bitfarms’ shares should close at $1 per share for a minimum period of 10 consecutive days at any time before June 12, 2023. In such an event, the Nasdaq staff will provide written notification to Bitfarms that it has achieved compliance, the announcement notes.
The 180-day period is not the final limit, however. Bitfarms noted that it will have a chance to extend the compliance period further even after June 12, stating:
“If the company does not regain compliance with Rule 5550(a)(2) by June 12, 2023, the company may be eligible for an additional 180 calendar day compliance period.”
The company stressed that the Nasdaq letter is only a notification and has no immediate effect on the listing or trading as the Bitfarms shares (BITF) will continue to trade on the exchange.
In case Bitfarms eventually fails to meet compliance with Nasdaq’s listing requirements for primary equity securities, the firm can potentially face delisting, a spokesperson for Bitfarms told Cointelegraph. The representative stressed that Bitfarms still has “number of remedies at its disposal” for its shares.
The company also expressed optimism about the future of crypto despite the ongoing market instability and events like the collapse of FTX.
“This period is really about the wheat separating from the chaff,” the company’s representative said, adding Bitfarms is seeing some benefits during a “very unfortunate period for many.” The spokesperson stated:
We remain bullish on Bitfarms’ and are very excited about the company’s outlook, as well as the future of the Bitcoin and cryptocurrency. The current state of both the crypto and Bitcoin mining ecosystems is working to reinforce our commitment to the industry.”
Bitfarms also noted that the company remains to be listed on the Toronto Stock Exchange and the latest notice from Nasdaq has no impact on the firm’s compliance status with such listing or its business operations.
As previously reported by Cointelegraph, Bitfarms debuted stock trading on Nasdaq in June 2021, just a few months after going public on the Toronto Stock Exchange in April.
After reaching an all-time high at roughly $6 in December 2021, the Bitfarms stock has been gradually selling out on Nasdaq, in line with the ongoing cryptocurrency bear market.
Related: BTC difficulty drops by the biggest margin since 2021
According to data from TradingView, Bitfarms’ shares dropped below $1 in late October 2022 and have not retested the $1 price mark since. Bitfarms’ stock closed at $0.54 on Dec. 13, seeing a 7.6% increase over the day.
Bitfarms is one of many cryptocurrency mining companies facing major issues due to the ongoing crisis in the market. In June, the firm was forced to sell about $62 million worth of self-mined Bitcoin in order to reduce its debt. A number of other mining firms, including Argo Blockchain, Core Scientific and Riot Blockchain, also opted to sell their Bitcoin amid tough market conditions.
On Dec. 12, Argo Blockchain said that it has been considering selling its assets in order to avoid filing for bankruptcy.
