Mining
Bitcoin mining firm BIT Mining, which is at the moment buying and selling beneath $0.50 a share, mentioned that buyers should not be involved with its present inventory value, regardless of a warning from the New York Inventory Alternate (NYSE) that the corporate is “not in compliance” with its itemizing requirements.
“It shouldn’t be regarding that our inventory is at the moment buying and selling at these ranges,” Chairman Bo Yu mentioned in a press release Friday. “Regardless of the tumultuous market circumstances, relaxation assured that the present inventory value could have no affect on our firm’s regular enterprise operations and our capability to create worth for our buyers sooner or later.”
Present market circumstances have affected the business on the whole prior to now six months, reflecting “poorly on the inventory costs and revenues for everybody within the sector,” Yu mentioned.
The assertion got here on the heels of a discover from NYSE that BIT Mining’s shares may very well be delisted for buying and selling beneath $1 for greater than 30 days, a submitting with the US Securities and Alternate Fee (SEC) exhibits.
The corporate was given six months to adjust to these guidelines or “the NYSE will begin suspension and delisting procedures.” BIT Mining, in flip, advised the NYSE that it intends “to treatment the deficiency,” the corporate mentioned 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 enlargement.” 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 improvement, together with the “in-house improvement of a brand new technology of extremely environment friendly” miners.
“These investments are sooner or later development of our firm and can yield the best returns within the medium to long run for our buyers,” Yu advised buyers.
BIT mining posted a web lack of $21 million in its second quarter on Friday. It reported an impairment cost associated to cryptocurrencies of $4.9 million. Revenues have been $195.5 million, down 34% from the earlier quarter.
“Over the previous quarter, we’ve centered on R&D and figuring out synergies throughout our vertically built-in provide chain. Cryptocurrency value weak point and better vitality costs have had a big affect on inventory costs and revenues of firms in our sector, together with BIT Mining,” BIT Mining CEO Xianfeng Yang mentioned 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 most important enterprise segments: self-mining, mining pool, information middle operation and miner manufacturing.
“The corporate is pursuing its improvement technique to deal with cryptocurrency mining operations globally,” it mentioned 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 companies together with governance and monitoring, node administration and account programs.”
