Bitfarms’ shares slump on Nasdaq debut amid crypto market pull-back


Bitfarms’ debuting shares have been unable to escape the bearish crypto meta-trend, despite the firm claiming its profits have increased amid the recent drop in Bitcoin hash rate.

The highly anticipated Nasdaq debut of renewable energy-focused BTC mining firm, Bitfarms (BITF), saw the company’s stock fall by as much as 8.6% amid weakness in the broader crypto markets.

BITF opened at $4.04 and quickly climbed a couple of percent to tag 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.

BITF/USD: Nasdaq

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 hands for $27.83, while Hive Blockchain (HIVE) trading at $2.38 for a loss of 57% from its February high of $5.50, and Riot Blockchain (RIOT) priced at $31.57 after falling nearly 60% from its February peak of $77.90.

In addition to the heavy BTC sell-off that followed Bitcoin’s April all-time high, the poor performance of mining stocks has resulted from negative perceptions concerning”>the sector’s energy consumption, and reactions to China’s”>escalating crackdown on domestic miners.

However, Bitfarms claims to have benefited from the recent”>hash rate 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, Bitfarms 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.”

Related:”>Nvidia GPU prices in China fall amid crypto mining crackdown

Despite the heavy drawdowns recently observed in the price of mining stocks, Cointelegraph reported in March that the sector had”>outperformed the spot price of Bitcoin by 455% during the preceding 12 months.