By
Tolu Ajiboye
March 8th, 2024
Digihost has received a notification from Nasdaq on a possible delisting if further it fails to meet compliance.
Bitcoin (BTC) Miner Digihost (NASDAQ: DGHI) is reportedly at risk of a Nasdaq delisting as it has traded below $1 for 30 consecutive business days. The Houston-based crypto miner violated Nasdaq’s listing compliance by trading below the $1 threshold for a prolonged period. Last Monday, Digihost, which has seen its shares plummet 84% this year, received a deficiency notice from the prominent stock exchange.
Nasdaq Offers Digihost 180-Day Period to Avoid Delisting
According to Nasdaq, Digihost has a grace period of up to 180 days to steady its ship and avoid delisting. Furthermore, the leading stock exchange platform also says that Digihost must comply with its listing rules. The crypto mining firm has to do this by trading for $1 or more for at least 10 consecutive days. Part of the Nasdaq notice read:
“In accordance with Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial period of 180 calendar days, or until April 10, 2023, to regain compliance. The letter states that the Nasdaq staff will provide written notification that the Company has achieved compliance with Rule 5550(a)(2) if at any time before April 10, 2023, the bid price of the Company’s Shares closes at US$1.00 per share or more for a minimum of ten consecutive business days.”
On what happens should Digihost fail to meet the prestated compliance requirements during the period of grace, Nasdaq says:
“If a company is unable to resolve its bid price deficiency during the applicable compliance period, Nasdaq Staff will issue a delisting letter. At that time, the company may request a hearing before a Hearing Panel, which will stay the delisting.”
In addition, the leading stock exchange company also explains in detail the intricacies involved in the ensuing “panel” process.
Last Friday, Digihost filed a document stating that the company’s operations were going on as usual despite the notification letter. Furthermore, the crypto miner revealed intentions to resolve the deficiency and regain compliance with the prescribed Nasdaq Listing Rules.
Digihost saw its shares slip below $1 for the first time, since its November 2021 listing, on August 23, 2022. Currently, the crypto mining firm’s stock is changing hands around $0.71, marking a freefall from $4.6 back in January.
General Downturn of Crypto Prices Pose Uphill Battle for Digihost
BTC’s bearishness is likely the major reason for Digihost’s problem. The market for the leading crypto and other digital currencies is in decline and impacting everything else. The mining industry is among the worst hit, as Bitcoin is trading 71.98% down from its November record high of $68,789.63. As of press time, the prominent token is trading at just over $19K.
Besides Digihost, two other public mining companies have also received similar alerts from Nasdaq. Mawson Infrastructure Group and BIT Mining, both public miners, must also improve to remain on the New York-based stock exchange.