The recent meltdown in cryptocurrency markets is shaking up the real-world finances for Chinese cryptocurrency companies.
Ebang International Holdings Inc. (EBON.US), a maker of cryptocurrency mining machines, said last Friday it was warned by the Nasdaq that its shares could be delisted after trading below $1 for 30 consecutive business days.
https://www.globenewswire.com/news-release/2022/06/24/2468995/0/en/Ebang-International-Announces-Receipt-of-Nasdaq-Notification-Regarding-Minimum-Bid-Price-Deficiency.html
Just a day earlier, rival crypto mining machine maker Canaan Inc. (CAN.US), and crypto mining pool operator BIT Mining Ltd. (BTCM.US), unveiled separate moves reflecting their own recent challenges. Canaan said it plans to repurchase warrants it issued last year for about $6.6 million, while BIT Mining raised $16 million from its own new warrant issue.
https://www.prnewswire.com/news-releases/canaan-inc-announces-the-repurchase-of-over-4-72-million-outstanding-warrants-for-approximately-us6-61-million-301574108.html
https://www.prnewswire.com/news-releases/bit-mining-announces-us16-million-registered-direct-offering-301574072.html
While the three events seem unrelated, the subtext behind each is tanking crypto prices, which is undermining the companies’ market values and threatening to hurt their businesses that rely heavily on booming demand for cryptocurrencies. Bellwether cryptocurrency bitcoin has lost more than 50% of its value this year and is worth less than a third of its all-time high reached last November.