The ripple effects of the ongoing Bitcoin bear market continue to spread across the digital asset ecosystem, impacting publicly traded crypto mining companies in significant ways. Plummeting Bitcoin prices have triggered a chain reaction—leading to delisting warnings for major mining firms like Bit Mining and Ebanger International, sharp declines in stock valuations, and forced Bitcoin sell-offs to maintain liquidity. This article explores how market downturns are reshaping the mining industry’s financial health, corporate strategies, and long-term sustainability.
Bit Mining Receives NYSE Delisting Warning
In early August 2025, Bit Mining Limited (NYSE: BIT), a prominent player in the Bitcoin mining sector, announced it had received a deficiency notice from the New York Stock Exchange (NYSE). The warning stemmed from the company’s American Depositary Shares (ADS) averaging less than $1.00 per share over 30 consecutive trading days—a violation of NYSE’s continued listing standards.
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Under NYSE rules, Bit Mining has a six-month cure period to regain compliance by either boosting its stock price or executing a reverse stock split. As of the announcement date, the company's shares were trading at $0.72, reflecting an 88% drop year-to-date. At its peak during the 2020–2021 bull run—when Bitcoin surpassed $60,000—Bit Mining’s stock surged from $2 to as high as $35 following its strategic pivot from lottery services to Bitcoin mining.
However, with Bitcoin retreating below $30,000 in 2025, the company’s valuation has followed suit. On June 30, 2022, its shares hit a historic low of $0.60, and recovery has remained elusive amid prolonged market stagnation.
Zhang Danni, Vice President of Bit Mining, attributed the decline primarily to macroeconomic pressures and sustained weakness in cryptocurrency markets. “While we’ve received this notification, it does not affect our day-to-day operations or trading status,” she stated. “We remain confident in our ability to meet listing requirements through operational improvements and strategic refinancing.”
Strategic Moves to Strengthen Financial Position
To shore up capital and ensure long-term viability, Bit Mining has undertaken several strategic initiatives. In June 2025, the company completed a direct offering of ADSs worth $16 million. Proceeds are earmarked for expanding mining infrastructure, acquiring new ASIC miners, and enhancing working capital.
Additionally, on July 12, Bit Mining sold 279.7 million shares in Loto Interactive Entertainment at HK$0.20 per share, generating HK$78.3 million (~$10 million USD). Loto Interactive is a Hong Kong-listed provider of lottery-related technology services—part of Bit Mining’s legacy business before its full transition into crypto mining.
This divestment aligns with the company’s strategic refocusing on core mining operations in North America. Notably, ownership of Bit Mining has also shifted significantly: Sichuan Development Holding Co. now holds 14.01 million shares, surpassing Tsinghua Unigroup as the largest shareholder. Renowned investor Sequoia Capital maintains a long-term stake of 3.5 million shares without any recorded减持 since the company’s IPO in 2013.
Institutional interest remains cautiously optimistic. Since Q1 2025, firms such as Susquehanna International Group, Invesco Capital, and UBS Asset Management have modestly increased their positions—adding tens of thousands of shares collectively—signaling underlying confidence despite market headwinds.
Ebanger International Faces Nasdaq Compliance Issues
Bit Mining is not alone in facing regulatory scrutiny over share price performance. On June 24, Ebanger International (NASDAQ: EBON), another key Chinese-linked mining firm listed in the U.S., received a similar delisting warning from Nasdaq due to its stock trading below $1 for 30 consecutive days.
Ebanger, known for manufacturing high-performance Bitcoin mining hardware, ventured into cryptocurrency mining and launched its exchange platform Ebonex in early 2021. Its stock once reached $13.70 amid the bull market frenzy but has since declined sharply. By August 2025, shares were trading at $0.57—a 44.66% drop year-to-date.
Despite the warning, Ebanger’s Chairman Hu Dong remained defiant: “Ebanger will not be delisted,” he told reporters, though he declined to disclose specific remediation plans. He did hint that the company is expanding into blockchain-based payment solutions as a complementary revenue stream.
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In a positive development, Ebanger announced on August 5 that its Australian arm, Ebonex, would partner with Mastercard to launch a crypto-linked debit card—potentially opening new avenues for user adoption and fee-based income.
Industry-Wide Bitcoin Liquidation Amid Cash Crunch
As mining revenues shrink due to lower BTC prices and rising energy costs, many public mining companies have resorted to selling their Bitcoin reserves to cover expenses and service debt.
According to data compiled by Arcane Research (formerly ArcaneCrypto), publicly traded miners sold over 4,271 BTC in May 2025 alone—a 329% increase from April. June saw even heavier liquidation, with more than 10,000 BTC sold across major players.
Notable examples include:
- Core Scientific: Sold 7,202 BTC in June (~$167 million), nearly 90% of its holdings.
- Riot Platforms: Offloaded 250 BTC in May.
- Argo Blockchain: Disposed of 427 BTC.
- Bitfarms: First major miner to announce an end to its “HODL” strategy; sold 3,000 BTC in June for $62 million to repay part of a $100 million credit line from Galaxy Digital.
These sales reflect growing financial pressure. With BTC hovering around $28,000–$31,000 and hash rate competition intensifying, profit margins have narrowed dramatically. Many miners operate near break-even levels or at a loss unless they have access to low-cost power or hedging instruments.
FAQ: Understanding the Mining Sector's Crisis
Q: Why are mining stocks receiving delisting warnings?
A: U.S. exchanges require listed companies to maintain a minimum average stock price (typically $1 over 30 days). Prolonged bear markets reduce investor confidence and trading volume, pushing prices below compliance thresholds.
Q: Can companies avoid delisting after receiving a warning?
A: Yes. They typically have six months to regain compliance via reverse stock splits, share buybacks, or organic price recovery through improved operations or market conditions.
Q: Why are miners selling Bitcoin instead of holding it?
A: Falling BTC prices reduce mining profitability. To cover operational costs and debt obligations, companies must convert BTC into fiat currency—especially if they lack sufficient cash reserves.
Q: Is this level of sell-off bearish for Bitcoin?
A: Potentially yes. Large-scale miner selling increases short-term supply pressure on exchanges, which can suppress prices further—especially during weak market sentiment.
Q: Are all mining firms in trouble?
A: Not uniformly. Miners with strong balance sheets, low electricity costs (e.g., those using stranded or renewable energy), and efficient hardware are better positioned to weather downturns.
Q: What happens if more miners go bankrupt?
A: Bankruptcies could lead to fire sales of mining equipment and BTC holdings—increasing volatility. However, this may also accelerate industry consolidation and improve network efficiency over time.
The Road Ahead for Public Miners
The current environment underscores the cyclical nature of Bitcoin mining. While today’s conditions are harsh, history shows that survivors often emerge stronger after bear markets end.
Companies that focus on cost optimization, geographic diversification of operations (e.g., U.S., Canada, Kazakhstan), and transparent governance are more likely to endure. Strategic partnerships—like Ebanger’s move into crypto payments—may open new revenue streams beyond pure mining.
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For investors and observers alike, monitoring these developments offers valuable insight into both market sentiment and the structural resilience of the crypto mining industry.
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With over 46,000 BTC still held collectively by top public miners (per Arcane Research), how these firms manage their reserves will be critical not only for their survival—but for broader Bitcoin market dynamics in the months ahead.