Bitcoin mining company BIT Mining, which is currently trading below $0.50 a share, said that investors shouldn't be concerned with its current stock price, despite a warning from the New York Stock Exchange (NYSE) that the company is "not in compliance" with its listing standards.
"It should not be concerning that our stock is currently trading at these levels," Chairman Bo Yu said in a statement Friday. "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."
Current market conditions have affected the industry in general in the past six months, reflecting "poorly on the stock prices and revenues for everyone in the sector," Yu said.
The statement came on the heels of a notice from NYSE that BIT Mining's shares could be delisted for trading below $1 for more than 30 days, a filing with the US Securities and Exchange Commission (SEC) shows.
The company was given six months to comply with those rules or "the NYSE will commence suspension and delisting procedures." BIT Mining, in turn, told the NYSE that it intends "to cure the deficiency," the company said in its filing with the SEC.
BIT mining's stock fell below $1 on June 23, data from Yahoo Finance show. In the last six months, it has declined by about 85.8%. It was priced at $0.39 as of market close on Friday.
The company argued that the two rounds of funding it closed recently will help "maximize the value of our investments for the future of the company and continue our further expansion." It raised $16 million from the sale of 16 million shares on June 30 and an additional $9.3 million on August 19. It also pointed toward its investments in research and development, including the "in-house development of a new generation of highly efficient" miners.
"These investments are in the future growth of our company and will yield the greatest returns in the medium to long term for our investors," Yu told investors.
BIT mining posted a net loss of $21 million in its second quarter on Friday. It reported an impairment charge related to cryptocurrencies of $4.9 million. Revenues were $195.5 million, down 34% from the previous quarter.
"Over the past quarter, we have focused on R&D and identifying synergies across our vertically integrated supply chain. 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," BIT Mining CEO Xianfeng Yang said in advance of the company's second-quarter earnings report.
The company recently announced the sale of its subsidiary Loto Interactive. It also acquired Bee Computing, a manufacturer of mining hardware. BIT Mining has four main business segments: self-mining, mining pool, data center operation and miner manufacturing.
"The company is pursuing its development strategy to focus on cryptocurrency mining operations globally," it said in its second-quarter earnings. "Given our early-mover advantage in Ethereum mining, we are also making inroads into Proof-of-Stake (POS) operations by providing a series of services including governance and monitoring, node management and account systems."
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