Bitcoin mining is a questionable enterprise at the moment. Since the end of August 2022, we have been reporting on the issue and pointed out that the industry is in dire need of downsizing.
Many BTC miners decided to wait out the bear market and power through by liquidating some of their long BTC positions to cover operational expenses.
While it is a strategy that some companies may try using, thanks to having reserves, many are going out of business.
Bitfarms received a warning from Nasdaq
The Canadian company Bitfarms was listed on Nasdaq in 2019 and traded just under $0.5 for a year before shooting to $8.9 per share by August 2021.
However, the recent performance of the stock was quite unimpressive, and the exchange announced that it is sending a warning to Bitfarms, notifying it that the company must regain compliance. BITF was traded under $1 for 30 consecutive days.
Bitfarms must close at $1 or higher for at least 10 consecutive days before June 12, 2023. Otherwise, the company will be delisted.
It is something that may very well happen, considering the overall bear market and the expensive nature of the BTC mining business at the moment.
Due to BTC prices falling, many miners cannot make ends meet and have to suffer significant operational losses.
The company is struggling to maintain its operations on the same scale as usual.
Due to unfavorable market conditions, it failed to produce any profits for more than half of a year, slowly losing the trust of investors.
It is unlikely that the tables will turn before June 12, 2023.
Something big must happen before then and the price of BTC should be moving in the upward direction for some time for investors to regain confidence in mining companies.
Miners cannot catch a break
The decision by Ethereum developers to switch to PoS is definitely something that looks great in hindsight. Miners are going through tough times, making it hard for Bitcoin to look good in investors’ eyes.
It is truly a historical moment for the crypto community as PoW and PoS are battling it out on the biggest scale possible.
