, 2022-12-13 18:45:00,
What’s shrinking even more rapidly than bitcoin?
At least one answer to that question is BIT Mining Ltd. (NYSE:BTCM), one of many cryptocurrency companies minted in China over the last two years during better times when bitcoin was booming. Of course, just the opposite is true now, which has put many of these companies’ futures in doubt. Within that group, BIT Mining appears to be one of the most endangered.
On Monday the company unveiled the latest step in its fight for survival, announcing a change in its American depositary share (ADS) ratio that equates to a 10-for-1 reverse share split. The move is relatively technical, designed to bring the stock above the $1 level to avoid delisting based on the New York Stock Exchange’s requirement that all stocks trade above $1.
Based on its Monday closing price, the reverse split, which takes effect Dec. 23, would raise BIT Mining’s shares to $2.33, removing that delisting threat – at least for now. The stock fell 6% in after-hours trading after the announcement, indicating investors weren’t particularly impressed. At its current level, the company is valued at just under $25 million, a fraction of where it stood a year ago.
The bigger backstory, of course, is the huge crash of bitcoin and other cryptocurrencies this year. Bitcoin is reflective of the larger group, down about 64% this year. The crash has dragged down a few major companies so far, including the high-profile collapse of FTX (FTX-USD) last…
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