It seems that digital currency mining companies are still feeling the effects of the ongoing dry spell in the crypto market as it was announced on April 1, 2019, that Israeli firm Bitfarms has been delisted from the Tel Aviv Stock Exchange.
Off the Exchange
It’s always a source of good news when the blockchain industry makes progress towards mainstream acceptance. Examples of this are when Nasdaq listed bitcoin and ethereum indices and when their technology was deployed by Bcause.
On the other hand, there are unfortunate situations where some of the progress made gets undone, such as places that used to accept cryptocurrency as payment reverse their decision.
A similar situation occurred when it was reported on April 1, 2019, that Bitfarm, an Israeli crypto mining firm, has been delisted from the Tel Aviv Stock Exchange. The reason for this is consistent losses the firm has experienced since the crypto market crash.
Prior to the bear market, the firm had seen impressive profits and was even able to get listed on the Tel Aviv stock exchange.
However, around the time the crypto market took a downturn, their fortunes began to thin. Bitfarm saw losses of $23.1 million in the second half of 2018 and for both quarters saw net profits of $4.9 million. That second half also saw a decrease of 48 percent in their revenue from $22.3 million to $11.5 million.
This, obviously, is a ripple effect of the bear market. Once the price of cryptocurrencies dropped, the demand for mining products and servers dropped along with it and various mining firms went out of business as a result. On top of this, the mining rewards for bitcoin decreased dramatically.
While Bitfarm did increase its share price by 80 percent in 2018, it is still 90 percent lower than what it was in December 2017, a time when bitcoin was at its peak.
Despite this disappointing announcement, Bitfarms is still forging ahead. They have filed with the Ontario Securities Commission to be listed on the Toronto Stock Exchange.
Bitfarms CFO John Rim said:
“Despite the challenges, through continuous reinvestment of cash flow generated from our operations, careful financial planning and disciplined execution, we were able to achieve many operational growth objectives in 2018.”
He added that the company has been able to secure a $20 million debt facility that will help them stay afloat.