This year’s digital asset bear market has dealt a big blow to block reward miners, and one of them faces delisting from the New York Stock Exchange (NYSE). NYSE issued a notice to BIT Mining Limited (NYSE: BTCM) threatening it with delisting for trading below the applicable price criteria since June.
BIT Mining revealed that it had received the NYSE letter on July 29, notifying it that it was not in compliance with the exchange’s applicable price criteria. This criteria threatens to delist any company whose share price has traded consistently below $1 for 30 trading days.
The miner’s shares fell below $1 on June 23 and have consistently traded below this hallmark since then. At press time, BTCM shares are trading at $0.39.
The notice gives the miner six months to fix its share price or risk delisting. During this time, it can regain compliance if the average closing share price hits $1 per share for a 30-day trading period. BIT Mining, in response, notified the NYSE that it intends to cure the deficiency.
Despite the notice, the company isn’t concerned, Chairman Bo Yu claimed in a statement.
“It should not be concerning that our stock is currently trading at these levels. Despite the tumultuous market conditions, rest assured that the current stock price will have no impact on our company’s normal business operations and our ability to create value for our investors in the future,” he said.
Yu blamed this year’s market conditions for the bad share price run. The bear market has affected every other company’s revenue and share price in the industry, he says.
CEO Xianfeng Yang concurred, stating, “Cryptocurrency price weakness and higher energy prices have had a significant impact on stock prices and revenues of companies in our sector, including BIT Mining.”
One of the ways the company is seeking to remedy its share price dip is by securing additional funding. In June, it raised $16 million through the sale of additional shares. Last week, it sold another 15.5 million shares to raise $9.3 million, which it pledged to invest in mining machines, expanding infrastructure, and delving into new business opportunities.
BIT Mining announced its Q2 financial results last week, revealing that it recorded a $23.3 million loss. This was five times higher than in the first quarter when the loss was at $4.3 million and represented an increase of $8.4 million from a similar period last year.
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