Bitfarms’ shares slump on Nasdaq debut amid crypto market downward
The highly anticipated Nasdaq debut of the renewable energy-focused Bitcoin mining firm, Bitfarms (BITF), saw the company’s stock fall by 8.6% amid the downgrade of crypto markets.
The stock on Nasdaq, BITF opened at $4.04 and quickly climbed a high of $4.11 before dropping as low as $3.90 as cryptocurrency prices tumbled. Bitfarm’s shares last traded hands for $3.96.
The share prices of publicly-listed Bitcoin mining firms have taken a beating over recent months.
Marathon Digital Holdings (MARA) is down roughly 51% from its early-April all-time high of $56.50 after its stock last changed hnds for $27.83, Hive Blockchain (HIVE) is trading at $2.38 for a loss of 57% from its February high of $5.50, and Riot Blockchain (RIOT) priced ata $31.57 after falling nearly 60% from its February peak of $77.90.
Following the heavy sell-off that followed Bitcoin’s April all-time high, the poor performance from mining stocks has resulted from negative perceptions concerning the sector’s energy consumption, and reactions to China’s escalating crackdown on domestic miners.
Bitfarms claims to have benefited from the recent hashrate exodus from China amid the clampdown, with the Canada-based firm estimating 99% of its computation is powered by green hydroelectricity.
In its June 10 production update, the company stated:
"As the hashrate of Chinese miners falls, Bitfarms has earned higher transaction fees and increased its share of the total Bitcoin network hashrate. As a result, Bitfarms has been earning more Bitcoin for the same amount of computational power and operational cost."