Nasdaq warns Bitcoin mining firm Bitfarms about share price deficiency
Bitfarms has an initial period of 180 calendar days to have its shares trading above $1 for at least 10 days before June 12, 2023.
You might feel aggrieved when your favourite shitcoin is delisted by an exchange because it is trading in nano-cents, but just look at the rules for a listing on Nasdaq.
“If the company [Bitfarms] 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.”
So, there is time, no sudden delisting, but even so, currently trading at $0.44 means a 120% price hike in six months. Current market cap is $95m. Good luck with that!
I'm not sure of the logic behind this rule. It possibly arises from one of the rules for a new listing, which requires a minimum issue price of $4, so that $1 means at least a 75% loss in value. That doesn't necessarily mean that such a company is dead, but it might mean a financial restructuring, such as share buybacks.
One issue with many crypto exchanges is how random their policies appear to be. Exchanges with years of experience have a list of seemingly petty rules to trip over, but at least there are known rules and metrics to abide by - and time to correct them.
In one sense, kinda pointless FUD, but interesting to see the rules - and I'd be concerned having to gain 120% in 6 months. They could mine prayers to the electric monk.