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Gryphon Digital Mining, Inc. (NASDAQ:GRYP), a cryptocurrency mining firm, has been notified by the Nasdaq Stock Market LLC that it fails to meet the minimum Market Value of Listed Securities (MVLS) requirement. The company's MVLS fell below the required $35 million threshold from July 31, 2024, to September 12, 2024, triggering the notice from Nasdaq on Friday, September 13, 2024.
The Nasdaq's Listing Qualifications Department's notice indicates that Gryphon Digital Mining is not in compliance with the Nasdaq Listing Rule 5550(b)(2), which mandates a minimum MVLS of $35 million for continued listing on The Nasdaq Capital Market. The company, headquartered in Las Vegas, Nevada, has been given 180 calendar days, until March 12, 2025, to regain compliance.
To meet Nasdaq's standards within the given timeframe, Gryphon Digital Mining's MVLS must reach and maintain at least $35 million for a minimum of ten consecutive business days. If the company succeeds in doing so, Nasdaq will confirm compliance in writing, and the matter will be resolved. However, if Gryphon Digital Mining does not achieve compliance by the Compliance Date and does not meet an alternative listing standard, it may face delisting.
While the notice does not immediately affect the trading of Gryphon Digital Mining's common stock, which continues to be listed under the ticker "GRYP," it does put pressure on the company to address the issue promptly. The company is currently exploring options to regain compliance with the MVLS Requirement, but there is no guarantee of success.
The company's Chief Executive Officer, Robby Chang, signed the report on behalf of Gryphon Digital Mining, reaffirming the company's awareness of the situation and its obligation to address the listing standards. This development is based on a recent press release statement and reflects the company's current regulatory standing with Nasdaq.
In other recent news, Gryphon Digital Mining has reported several noteworthy developments. The company's annual meeting results included the re-election of Jessica Billingsley as a Class III director and the ratification of RBSM LLP as its independent registered public accounting firm. However, the proposal to declassify its Board of Directors did not pass.
Gryphon also announced the acquisition of up to 2.9 MW of low-cost power mining operations, aligning with its strategy to secure over 500 MW of similar opportunities. This expansion led to an 8% increase in its monthly average hashrate and an estimated monthly bitcoin production of 20 bitcoins.
Furthermore, Gryphon welcomed co-founder Dan Tolhurst back to its Board of Directors. Analyst firm H.C. Wainwright maintained a Neutral rating on Gryphon, highlighting the company's experienced management team.
Regarding legal matters, Gryphon has been cleared of liability in a security breach incident involving Sphere 3D Corp but continues to pursue a counterclaim against Sphere for alleged breaches of their Master Service Agreement, seeking approximately $45 million in damages. These are the recent developments from Gryphon Digital Mining.
InvestingPro Insights
As Gryphon Digital Mining, Inc. (NASDAQ:GRYP) faces the challenge of meeting Nasdaq's MVLS requirements, a glance at the company's financial health through InvestingPro data provides a clearer picture of its current standing. With a market capitalization of just $21.26 million, Gryphon is significantly below the Nasdaq threshold. The company's revenue growth over the last twelve months has been positive at 22.09%, indicating some operational progress despite the compliance issue. However, the adjusted P/E ratio for the same period stands at a concerning -1.05, reflecting market skepticism about future earnings.
Two critical InvestingPro Tips for GRYP suggest caution for potential investors. The company operates with a significant debt burden and its short-term obligations exceed its liquid assets, which could impact its ability to quickly regain compliance with Nasdaq's MVLS requirements. Moreover, the stock is currently in oversold territory according to the RSI, and analysts do not anticipate Gryphon Digital Mining will be profitable this year.
For those interested in a deeper dive into Gryphon Digital Mining's financials and stock performance, InvestingPro offers additional tips and insights on their platform, which currently lists 11 InvestingPro Tips for GRYP, providing a comprehensive analysis for informed investment decisions.
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