Reuters/Christinne Muschi
Renewable energy-focused bitcoin mining company Bitfarms slumped in its first day of trading on the Nasdaq.
The Canadian company dropped as low as 8.6% to $3.9 on Monday amid a cryptocurrency sell-off. Mining companies Riot Blockchain and Marathon Digital Holdings fell as well.
Bitfarms estimates that among other publicly traded cryptocurrency mining companies, it has mined the largest amount of bitcoin with renewable energy. Bitfarms said it currently powers approximately 1% of the bitcoin network with more than 99% "green" hydroelectricity.
Bitcoin and other cryptocurrencies have slumped in recent weeks as authorities in China crack down on mining. Over the weekend, bitcoin miners were told to "clean up and terminate" their operations in the southwestern Sichuan province. Sichuan authorities said 26 bitcoin mining companies must be closed down on Sunday, according to a notice seen by the South China Morning Post.
Bitfarms said that the mining restrictions in China have been beneficial to the Northern American company.
"As the hashrate of Chinese miners falls, Bitfarms has earned higher transaction fees and increased its share of the total Bitcoin network hashrate. As a result, Bitfarms has been earning more Bitcoin for the same amount of computational power and operational cost," Bitfarms said on June 10.
In addition to its Nasdaq listing, Bitfarms will retain its listing on the TSX Venture Exchange, where it has traded since 2019.
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