Israel: Crypto Mining Firm Bitfarms Eyeing Move to Canadian Stock Exchange
It was announced on April 1, 2019, that Bitfarms is applying for listing on the Toronto Stock Exchange, essentially moving from their current home at the Tel Aviv Stock Exchange.
Off the Exchange
It’s always a source of good news when the blockchain industry makes progress towards mainstream acceptance. Examples of this are when Nasdaq listed bitcoin and ethereum indices and when their technology was deployed by Bcause.
A similar situation occurred when it was reported on April 1, 2019, that Bitfarms, an Israeli crypto mining firm, could be migrating from the Tel Aviv Stock Exchange to the Canada-based Toronto Stock Exchange. This will be done via a new arrangement with a Canadian firm which is subject to regulatory and court approval.
The possible move to Canada is not all that surprising as the country had made a conscious effort in the last few years to become much more crypto friendly. Many companies that deal in crypto mining are also making changes to their business model such as Nvidia, that is selling off all their stock.
Around the time the cryptocurrency market hit a dry spell, most mining companies were affected. Bitfarm saw losses of $23.1 million in the second half of 2018 and for both quarters saw net profits of $4.9 million. That second half also saw a decrease of 48 percent in their revenue from $22.3 million to $11.5 million.
This, obviously, is a ripple effect of the bear market that has been felt across the board. Once the price of cryptocurrencies dropped, the demand for mining products and servers dropped. Along with this, various mining firms went out of business.
While Bitfarm did increase its share price by 80 percent in the last year, it is still 90 percent lower than what it was in December 2017, when bitcoin was at its peak.
Despite this ongoing bear market, Bitfarm is still forging ahead. They have filed with the Ontario Securities Commission to be listed on the Toronto Stock Exchange. Should they be successful, the move should be made soon. Otherwise, they will remain with the Tel Aviv Stock Exchange.
Bitfarms CFO John Rim, said:
“Despite the challenges, through continuous reinvestment of cash flow generated from our operations, careful financial planning and disciplined execution, we were able to achieve many operational growth objectives in 2018.”
He added that the company has been able to secure a $20 million debt facility.