Nasdaq cautions non-compliant crypto mining firm

Nasdaq cautions non-compliant crypto mining firm

Nasdaq has issued a warning to Golden Bull Limited, a cryptocurrency mining firm regarding non-compliance. According to an announcement by the firm, Nasdaq cautioned it over failing to file its Form 6-K financial statements for the six-month period ended June 30, 2019.

Golden Bull operates an online finance marketplace as well as a peer-to-peer lending firm, focusing on short-term loans to small businesses. Based in Beijing, it targets the Chinese market predominantly. However, it recently revealed that it was exiting the P2P lending business and diversifying its portfolio.

The firm turned to crypto mining and car renting, starting to mine cryptos in March 2018. This was at a time when crypto prices took a huge dip, with the rest of the year being brutal to miners.

According to its recent announcement, the company’s failure to file its financial statements means that it no longer complies with Nasdaq’s listing rules. Nasdaq has given the company 60 days to file its financial statements or risk being delisted.

“The Company intends to file its Form 6-K on or before January 31, 2020 with six-month financial statements and to regain compliance with Nasdaq Listing Rules,” the firm stated.

Golden Bull has gone through a rough time in the past few years. The transition from P2P lending to the car rental business and crypto mining hasn’t panned out as well as expected. The company started mining cryptos at a time when the prices were quite low, which didn’t help its quest to return to profitable ways. In the 90-day period ending July last year, for instance, its stock price went down by 79%.

Currently, the company’s stock price stands at $0.4. The low stock price has seen the firm cautioned by Nasdaq in recent months. Listed firms whose ordinary shares trade under $1 for 30 consecutive days go against the exchange’s rules and could get delisted if they fail to improve.

While Golden Bull’s crypto mining venture hasn’t fared as well as expected, other crypto mining companies have continued to expand and increase their capacity. One of these is Argo Blockchain, a mining firm listed on the London Stock Exchange which recently revealed it had raised its mining capacity by 75%. Whinstone Inc., an American mining company, also announced that it’s developing what could be the largest mining company of its kind upon completion.

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