As per an official press release, Canadian Bitcoin (BTC) miner Digihost (DGHI) is debt-free and cash flow positive, despite a general decline in the crypto mining market. The development comes as a surprise as most Bitcoin mining companies are facing a severe cash crunch due to the falling price of BTC, and rising energy costs.
As per the announcement, the Nasdaq-listed firm mined 74.58 bitcoin (BTC) in October. This accounts for a 78% rise over the 41.84 BTC it mined in October of last year. Based on a BTC price of $20,705 as of October 31, 2022, the company possessed 118.16 BTC at the end of October, which was valued at almost $2.45 million. The company also holds $3.42 million in fiat.
Is the Bitcoin miner safe from its NASDAQ delists scare?
In mid-October, Digihost faced a potential delisting on NASDAQ after the firm’s stock price plummeted by 84% this year. The firm received a deficiency notice from Nasdaq after its stock traded below $1 for a prolonged period, thereby violating the exchange’s listing compliance. A deficiency notice is issued whenever a company’s stock trades for 30 straight days below $1 in accordance with NASDAQ Listing Rule 5550(a)(2). At press time, DGHI stock was trading at $.97, still below the required level. However, the Bitcoin mining company has till April 10th, 2023, to bring its price above the $1 mark.
Many mining businesses are feeling the brunt of the bear market. The world’s largest Bitcoin miner, Core Scientific (CORZ), warned that if its financial situation doesn’t get better, it may have to consider bankruptcy. Core Scientific has also paused all payments for the next few days, as a result of the cash crunch. Watcher Guru reached out to Core Scientific for a statement but has not received any word yet.
At press time, Bitcoin (BTC) was trading at $20,542.11, down by 0.9% in the last 24 hours.