2018 Bear Market Leads Bitfarm Mining Company to Explore Toronto Stock Exchange TSX Listing

The bear market has left a lot of victims in its path, and there have been many companies that have been forced to shut down their operations or greatly reduce their staff in order to avoid losing anything else. For one Tel Aviv Stock Exchange (TASE) listed company, the losses sustained from cryptocurrency mining have them exploring other listing options.

According to an initial report from Globes on April 1st, Bitfarms will now be delisted exploring other listing options after losing about $23.1 million during the latter half of 2018. The first two quarters only brought in $4.9 million, which is not much better at all. The overall revenue of Bitfarms revealed a 48% decrease from July to December, going from $22.3 million to $11.5 million.

To explain this massive loss, the firm said that Bitcoin’s declining price had a lot to do with the damage, along with the mining difficulty rising by 81%. Even though the share price of Bitfarms went up by about 80% since the beginning of 2018, it still is 90% lower than the recorded share price in December 2017.

A preliminary prospectus from Bitfarms has reportedly already been filed through the Ontario Securities Commission last week, in hopes of being listed on the Toronto Stock Exchange with their new merger. BitFarms Director of PR explained:

We have publicly announced a proposed arrangement with a newly created Canadian company which, if effected, would see Bitfarms migrate its Israel listing to Canada. It's subject to shareholder, court and regulatory approvals. If the proposed arrangement is not successful, Bitfarms will maintain its status as a TASE publicly traded company.

Based on BitFarms latest aquisitions and company profile make sense that they are seeking to have a listing closer to home. All of these are in Quebec

  • Acquisition of Volta électriqu
  • Built new Centralized Repair Lab in Saint-Jean-sur-Richelieu
  • Purchased and Installed 6,500 ASICs at 10MW facility
  • Finalized new energy agreements in Hydro-Sherbrooke
  • Constructed new 1.5MW operation

The CFO for Bitfarms, John Rim, explained that there were many operational growth objectives that the company managed to reach last year, even though they were faced with many different challenges. Last year, the entire cryptocurrency market saw its faith in Bitcoin challenged when the price dropped below $5,600, which it still has yet to recover from.

Last year, Bitmain had to shut down the development center that they hosted in Israel as well, while pulling back on the operations that they had in the Netherlands by January. The head of the Israeli branch and the vice president of international sales and marketing, Gadi Glikberg, said that the crypto market drop was to blame as well, adding that Bitmain was forced to “refocus its business,” based on the changing environment.

Update: This article was updated to correct some incorrect statments.

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