The debut of the Bitcoin mining company Bitfarm on the Nasdaq was not a good one. In fact, even Bitfarm was overwhelmed by the falling price of Bitcoin.
The end result: a few days after its debut on the stock exchange, Bitfarm’s shares plummeted from $4.05 to a low of $3.90 before closing the day at $3.96. All this happened while Bitcoin also fell from $35,000 to $29,500.
Bitfarm is just the latest Bitcoin-related company to debut on the stock exchange. Existing companies in the same operating sector are Marathon Patent Group and Riot Blockchain.
Yesterday, MARA shares also experienced a rollercoaster of ups and downs but managed to stay above $27. On the contrary, today’s day is expected to be negative with a loss of 3%. RIOT, on the other hand, managed to close yesterday’s turbulent day at $32.18.
Coinbase, the first exchange to be listed on the exchange, also suffered losses of around 5% yesterday, falling from $229 to $223.
Bitcoin in decline, the consequences on the Nasdaq
Bitcoin is in a lot of trouble these days. This trend is most likely influenced by China’s attitude, which is increasingly hostile to mining activities and also to bitcoin trading in general.
This has led BTC from the $40,000 it touched last week to the current $31,500, a weekly loss of 20%.
Inevitably, bitcoin-related companies such as Bitfarm or Coinbase, which are listed on the stock exchange, have suffered. Their stock prices have in fact dropped.
Bitfarm apparently chose the worst days to debut on the stock exchange, coinciding with a general market decline.
However, China’s hostility to mining could be good for Bitfarm and the North American BItcoin mining companies. China is accused of producing bitcoin using unclean energy.
On the contrary, North America is increasingly engaged in punitive mining, which is what the Bitcoin Mining Council is for. So perhaps China’s hostility to Bitcoin production activities could be good for the industry in general as it moves towards sustainable mining.