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

A blockchain-based agriculture firm has issued its first shares to investors on the New York Stock Exchange, but investors won’t get a sweet deal. BitFarms, which runs a cryptocurrency data center in Iceland, agreed to sell just 60 million of its shares to the public for $8, a 60% discount to its $25 offering price. The shares opened at $8.10 on Thursday, and sank as low as $7.57, before closing at $8.62. That amounts to a $4.57 discount from the IPO price.

Back in March, Bitfarms, a Canadian blockchain startup that produces cryptocurrency mining hardware, debuted on the Nasdaq—an event that meant a lot of people had a chance to buy and sell the company’s stock. In the weeks following the initial public offering (IPO), shares of Bitfarms’ (BCHF) plummeted, with the company’s stock dropping more than 80 percent.

Bitfarms is a company that mines for Bitcoin and Ethereum. Its shares went on sale on the Nasdaq yesterday, but some people have been putting some pretty negative comments on the stock.

Bitfarms (BITF), a renewable BTC mining company, saw its shares fall 8.6% in its highly anticipated debut on the Nasdaq amid weakness in the broader crypto-currency markets.

BITF opened at $4.04 and quickly climbed a few percent to a high of $4.11 before dropping to $3.90 amid falling cryptocurrency prices. Bitfarm shares recently traded at $3.96.

BITF/USD : Nasdaq

Share prices of bitcoin mining companies have fallen in recent months.

Marathon Digital Holdings (MARA) is down about 51% from its all-time high of $56.50 in early April, after the shares last traded at $27.83, while Hive Blockchain (HIVE) is trading at $2.38 after losing 57% from its February high of $5.50, and Riot Blockchain (RIOT) is at $31.57 after falling nearly 60% from its February high of $77.90.

In addition to BTC’s sharp sell-off following bitcoin’s all-time high in April, mining shares’ poor performance is the result of a negative perception of energy consumption in the sector, as well as a reaction to China’s tougher crackdown on domestic miners.

However, Bitfarms claims to have benefited from China’s recent hash rate due to the restrictions. The Canadian company estimates that 99% of its calculations are generated from green hydropower. In the production update of 10. June Bitfarms said:

When the hash rate of Chinese miners decreases, Bitfarms receives higher transaction fees and its share of the total hash rate of the Bitcoin network increases. As a result, Bitfarms earns more bitcoins for the same computing power and operating costs.

Related: Nvidia GPU prices drop in China due to mining restrictions on crypto-currencies

Despite recent sharp declines in mining shares, Cointelegraph reported in March that the sector has outperformed bitcoin spot price by 455% over the past 12 months.

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