Bit Origin Ltd Announces Receipt of Nasdaq Notification of Minimum Stockholders’ Equity Non-Compliance

Rhea-AI Summary

Bit Origin (NASDAQ: BTOG) has received a notification from Nasdaq indicating non-compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market. The company failed to maintain the required minimum of $2,500,000 in stockholders' equity, reporting only $909,583 as of June 30, 2024.

According to the notification letter, BTOG has 45 calendar days to submit a compliance plan to Nasdaq. If the plan is accepted, Nasdaq may grant an extension of up to 180 calendar days from the notification date to demonstrate compliance. The company's shares continue to trade on Nasdaq under the symbol 'BTOG' as the notification has no immediate effect on listing or trading.

Positive

• No immediate impact on stock listing or trading status

Negative

• Stockholders' equity of $909,583 is significantly below required $2.5M minimum
• Risk of potential delisting if compliance plan is not accepted or executed
• Company has only 45 days to submit compliance plan

Insights

Financial Compliance Analyst

This Nasdaq compliance issue raises serious red flags about BTOG's financial health. With stockholders' equity of just $909,583 - far below the required $2.5 million threshold - the company faces potential delisting if unable to present and execute a viable compliance plan. The 63.6% shortfall from the minimum requirement suggests significant balance sheet weakness. Historically, companies receiving such notices often struggle to regain compliance, frequently resulting in eventual delisting or necessitating dilutive financing. This situation typically triggers increased volatility and reduced institutional interest. The 45-day window to submit a remediation plan, potentially extended to 180 days upon acceptance, provides time to address fundamental capital structure issues. Critical observation: the reported equity figure is from June 2024, meaning the current position could be even weaker given the challenging crypto mining environment.

Crypto Industry Analyst

The notification represents broader challenges in the crypto mining sector. For a small-cap miner like BTOG with a market cap of just $8.7 million, maintaining adequate equity levels has become increasingly difficult amid Bitcoin's volatility and rising operational costs. The equity shortfall indicates potential cash burn issues common among emerging crypto miners. To regain compliance, BTOG may need to consider strategic alternatives like equipment sales, debt restructuring, or equity raises - all challenging in the current market environment. The timing is particularly concerning as it coincides with increased competition from larger, better-capitalized miners preparing for the upcoming Bitcoin halving. Simple explanation: Think of this like a restaurant that doesn't have enough money in its bank account to meet the minimum requirements to stay open - they'll either need to find more money quickly or risk being forced to close their doors.

NEW YORK, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Bit Origin Ltd (NASDAQ: BTOG) ("Bit Origin" or the "Company"), an emerging growth company engaged in the crypto mining business with diversified expansion strategies, today announced that it has received a written notification (the "Notification Letter") from the Listing Qualifications staff of The Nasdaq Stock Market LLC ("Nasdaq") notifying the Company that it is no longer in compliance with the minimum stockholders' equity requirement for continued listing on the Nasdaq Capital Market, listing Rule 5550(b)(1), due to its failure to maintain a minimum of $2,500,000 in stockholders' equity. In the Company's Form 20-F dated December 26, 2024, the Company reported stockholders' equity of $909,583 as of June 30, 2024.

The Notification Letter provides that the Company has 45 calendar days to submit to Nasdaq a plan to regain compliance with the Rule. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from the date of the letter to evidence compliance.

The Notification Letter has no immediate effect on the listing or trading of the Company's securities on Nasdaq. The Company’s ordinary shares will continue to trade on Nasdaq under the symbol “BTOG”.

About Bit Origin Ltd

Bit Origin Ltd, formerly known as China Xiangtai Food Co., Ltd., is an emerging growth company operating in the United States and engaged in the cryptocurrency mining business. The Company is also actively deploying blockchain technologies alongside diversified expansion strategies. For more information, please visit https://bitorigin.io.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

Company Contact

Bit Origin Ltd
Mr. Jiang Jinghai, Chairman of the Board, CEO and COO
Email: ir@bitorigin.io

To keep updated on Bit Origin’s news releases and SEC filings, please subscribe to email alerts at https://bitorigin.io/contact

FAQ

What is BTOG's current stockholders' equity and how much does it need to comply with Nasdaq requirements?

BTOG reported stockholders' equity of $909,583 as of June 30, 2024, which is below Nasdaq's minimum requirement of $2,500,000 for continued listing.

How long does BTOG have to submit a compliance plan to Nasdaq?

BTOG has 45 calendar days to submit a plan to Nasdaq to regain compliance with the minimum stockholders' equity requirement.

What happens if Nasdaq accepts BTOG's compliance plan?

If Nasdaq accepts the plan, they can grant BTOG an extension of up to 180 calendar days from the notification date to demonstrate compliance.

Will BTOG's stock continue trading on Nasdaq during the compliance period?

Yes, BTOG's ordinary shares will continue trading on Nasdaq under the symbol 'BTOG' as the notification has no immediate effect on listing or trading.