Nasdaq has notified Digihost, a bitcoin miner, that it could be delisted as a result of its stock trading below $1. The company has 180 days from the date of the notice to resolve the problem or risk losing its stock trading on the exchange. Digihost is the latest bitcoin mining firm to be subject to delisting in a down market.
Nasdaq threatened to delist Digihost, a bitcoin miner, if it trades below $1 for 30 consecutive trading days. This is the latest mining company that has fallen into the danger zone of companies hoping to maintain their positions on major U.S. stock markets.
Digihost stated in a document filed Friday to the U.S Securities and Exchange Commission that “The Company’s operations are not affected” by the Notification Letter. The miner has 180 days in which to comply with the Nasdaq listing rules. This includes trading $1 or more for at least 10 consecutive calendar days. The filing stated that the miner may be eligible to receive an additional 180 compliance period.
Digihost is the latest company to have its stock listed in doubt due to the downturn in bitcoin mining.
Two other public miners, Mawson Infrastructure Group as well as BIT Mining, need to have better stock performance in order to maintain their listings on Nasdaq (NYSE) and New York Stock Exchanges (NYSE).
Three other bitcoin mining stocks have fallen below the \$1 threshold in the last week, while others trade slightly higher. The Block has seen a significant drop in stock prices of companies it tracks over the last week. If the stock price does not recover to above $1 per share, this could increase the risk of companies being delisted.
Bitcoin mining stocks are prone to following the price of the coin, which has fallen 70% from its all-time high in November last year, at $67,550, and by about 50% over the past six months. Profits for bitcoin miners have been squeezed by falling power costs and mining difficulty, which jumped 13.55% last week up to an all time high.
Mawson Infrastructure Group, a company based in Australia, expressed confidence that the company would remain on Nasdaq.
According to Nick Hughes-Jones (chief commercial officer of the company), “Per the 8K, if trades exceed $1 for 10 consecutive days, the issue is cured. Or we can do a reverse split. So we’re really not concerned about that,” Nick Hughes Jones, chief commercial officer, said to The Block last month.
One of the facilities that had in Georgia was sold to CleanSpark. The company stated that it would concentrate on Pennsylvania and Texas, where it sees “compelling returns on capital,” according to James Manning, Mawson CEO.
BIT Mining also tried to reassure investors that its stock would recover in August.
Bo Yu, Chairman of BIT Mining, stated that “despite the turbulent market conditions, rest assured the current stock price won’t have any impact on our company’s normal business operations and ability to create value in the future,” in a statement.