Bitcoin Miner Digihost Under Risk of Delisting from Nasdaq

Crypto miner Digihost is being investigated and threatened by Nasdaq with delisting if Digihost trades below $1 every 30 days.

The bitcoin miner is one of many that are in danger of losing their spot on major U.S. stock-exchanges.

Digihost was granted grace periods of up 180 days to address the problem. The company must adhere to the Nasdaq listing rules and trade for $1 or more every day for at least 10 days.

Digihost filed a document last Friday stating that operations continue as normal despite the complaint.

“The Company’s business operations are not affected by the receipt of the Notification Letter, and the Company fully intends to resolve the deficiency and regain compliance with the Nasdaq Listing Rules,” Digihost said in the filing.

Two other public mining companies, Digihost and Nasdaq, have also been closely examined by Nasdaq.

Public miners — Mawson Infrastructure Group and BIT Mining – need better stock performance to keep their listings on Nasdaq and the New York Stock Exchange (NYSE), respectively.  

Last week, three other companies were below the $1 threshold. Only a handful of stocks have traded slightly above this threshold.

If the stock price is not able to recover to more than $1 per share, several companies may be delisted by Nasdaq.

The reason for the stock price drop is the coin’s current cost. It has fallen around 50% in the past six months, and 70% since November 2012, when it reached its all-time high at $67,550.

Additionally, rising power costs have added strain to bitcoin miners’ profits. Last week, mining difficulty rose 13.55% to an all-time high.

Meanwhile, last week, a group of crypto firms led by Bitcoin mining tech provider Braiins and Block Inc’s subsidiary funding Bitcoin development called Spiral are promoting the adoption of Stratum V2 protocol.

Braiins, Spiral and a joint statement stated that the upgrade to Stratum V1 would increase security for miners, improve network performance, decentralize the network further, and improve communication.

The second version of Stratum (V2) promises many improvements to its protocol. These include censorship resistance and the ability for miners to choose their work instead of being assigned to them by pools. This will increase decentralization. The upgrade is required to support a rise in pooled miners and further growth. Hashrate.

This working group focuses now on the development and sharing of tools that allow all mining companies to quickly and seamlessly upgrade to Stratum V2 protocol.

According to the announcement, the working party has released the first open-source Stratum V2 reference implement (SRI), for testing. According to the report, the SRI will be available for anyone to use the updated protocol or as a guide in their own implementations of Stratum V2.

Source: Shutterstock



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