BIT Mining seeks to reassure investors as NYSE threatens to delist


Mining


Bitcoin mining firm BIT Mining, which is at present buying and selling beneath $0.50 a share, stated that traders should not be involved with its present inventory worth, regardless of a warning from the New York Inventory Trade (NYSE) that the corporate is “not in compliance” with its itemizing requirements. 

“It shouldn’t be regarding that our inventory is at present buying and selling at these ranges,” Chairman Bo Yu stated in a press release Friday. “Regardless of the tumultuous market situations, relaxation assured that the present inventory worth could have no influence on our firm’s regular enterprise operations and our capacity to create worth for our traders sooner or later.”

Present market situations have affected the trade generally previously six months, reflecting “poorly on the inventory costs and revenues for everybody within the sector,” Yu stated.

The assertion got here on the heels of a discover from NYSE that BIT Mining’s shares might be delisted for buying and selling beneath $1 for greater than 30 days, a submitting with the US Securities and Trade Fee (SEC) reveals.

The corporate was given six months to adjust to these guidelines or “the NYSE will begin suspension and delisting procedures.” BIT Mining, in flip, informed the NYSE that it intends “to treatment the deficiency,” the corporate stated in its submitting with the SEC.

BIT mining’s inventory fell beneath $1 on July 23, information from Yahoo Finance present. Within the final six months, it has declined by about 85.8%. It was priced at $0.39 as of market shut on Friday.

The corporate argued that the 2 rounds of funding it closed lately will assist “maximize the worth of our investments for the way forward for the corporate and proceed our additional growth.” It raised $16 million from the sale of 16 million shares on June 30 and a further $9.3 million on August 19. It additionally pointed towards its investments in analysis and growth, together with the “in-house growth of a brand new technology of extremely environment friendly” miners.

“These investments are sooner or later progress of our firm and can yield the best returns within the medium to long run for our traders,” Yu informed traders. 

BIT mining posted a internet lack of $21 million in its second quarter on Friday. It reported an impairment cost associated to cryptocurrencies of $4.9 million. Revenues had been $195.5 million, down 34% from the earlier quarter.

“Over the previous quarter, now we have centered on R&D and figuring out synergies throughout our vertically built-in provide chain. Cryptocurrency worth weak spot and better vitality costs have had a major influence on inventory costs and revenues of corporations in our sector, together with BIT Mining,” BIT Mining CEO Xianfeng Yang stated prematurely of the corporate’s second-quarter earnings report.

The corporate lately introduced the sale of its subsidiary Loto Interactive. It additionally acquired Bee Computing, a producer of mining {hardware}. BIT Mining has 4 major enterprise segments: self-mining, mining pool, information heart operation and miner manufacturing.

“The corporate is pursuing its growth technique to concentrate on cryptocurrency mining operations globally,” it stated in its second-quarter earnings. “Given our early-mover benefit in Ethereum mining, we’re additionally making inroads into Proof-of-Stake (POS) operations by offering a collection of providers together with governance and monitoring, node administration and account methods.” 


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