Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

Bitcoin Miner GRIID Lists On Nasdaq, Stock Drops 54% In 2 Days

Published 30/01/2024, 16:10
© Reuters.  Bitcoin Miner GRIID Lists On Nasdaq, Stock Drops 54% In 2 Days
BLOK
-

Benzinga - by Murtuza Merchant, Benzinga Staff Writer.

Bitcoin (CRYPTO: BTC) mining company GRIID Infrastructure (NASDAQ: GRDI) commenced trading in the U.S. market on Monday, following its initial public offering in Canada earlier this month.

The Cincinnati-based company, which operates mining facilities in New York and Tennessee, merged with special purpose acquisition company (SPAC) Adit EdTech to list on Nasdaq, Blockworks reported.

Company's Journey And Strategy:

GRIID made its first appearance in the public markets on Jan. 2, on Cboe Canada.

The company's Chief Strategy Officer, Harry Sudock, had previously indicated their intention to list in the U.S.

On Monday, GRIID's stock began trading on Nasdaq, with its price falling to around $7 at 11 a.m. ET, marking a 28% decrease from its opening price. At the time of publication Tuesday, shares were down over 54% since the listing, with the stock trading at $4.55.

“In the short term, we are focused on growing our capacity and increasing our hash rate,” Sudock stated earlier this month to Blockworks. “Ultimately, our goal is to continue expanding our power pipeline and leveraging operational excellence to be a leader in both Bitcoin mining and energy innovation.”

GRIID's CEO, Trey Kelly, said that the Nasdaq listing “will enhance our visibility, liquidity and broaden our investor base.”

Background And Market Context:

GRIID secured a $525 million credit facility from Blockchain.com in 2021 and initially planned to list on the New York Stock Exchange, a move that did not materialize. The Nasdaq listing precedes the anticipated bitcoin halving event in April, which will reduce mining rewards from 6.25 BTC to 3.125 BTC per block.

GRIID's Operations And Goals:

  • Mining Operations: Founded in 2018 and starting operations in 2019, GRIID had installed 20,623 Bitcoin mining machines as of Sept. 30, achieving a total hash rate of 447 peta hashes per second (PH/s).

  • Sustainable Energy Usage: The company utilizes approximately 67% carbon-free power for its facilities, aiming to increase this to 90% by the end of 2024.

  • Financial Performance: GRIID reported revenues of $2.6 million in the third quarter of 2023, totaling $8 million in the first three quarters of last year.

Also Read: Spot Bitcoin ETF Application Marks New Era For Hong Kong: Will It Unlock A Flood Of Chinese Investment?

Performance Of Mining Stocks:

GRIID's listing follows Bitdeer's Nasdaq debut last April, with the latter's stock down about 7% in 2024.

Other major mining companies like Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) have seen significant stock price declines this year, down 19% and 25% respectively, as of Monday morning.

Market Analysts' Views:

Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF (ARCA:BLOK), emphasized the importance of capital markets access for growth, especially with the upcoming halving.

“We believe that companies in the private market are going to be at a disadvantage, so GRIID’s decision to become public makes sense,” Weiskopf said. He added that they are observing GRIID's performance as more data becomes available.

Compass Point Research analysts noted the impact of the decline in hash price on miner stocks, predicting continued volatility and potential buying opportunities in light of the upcoming halving.

What's Next: As GRIID Infrastructure steps into the U.S. market, it joins a challenging but evolving landscape in the Bitcoin mining sector.

With the imminent Bitcoin halving and fluctuating market conditions, the company, along with its peers, faces a critical period that could shape the future of Bitcoin mining and investments in the sector.

Read Next: Ted Cruz, Marsha Blackburn, Cynthia Lummis Square Off With Elizabeth Warren In Senate Crypto Showdown

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.