Mawson receives Nasdaq non-compliance notice; faces delisting risk

Mawson Infrastructure Group Inc. (NASDAQ:MIGI), a company specializing in finance services under the organization name 09 Crypto Assets, has been notified by The Nasdaq Stock Market LLC of its non-compliance with the minimum Market Value of Listed Securities (MVLS) requirement. The company’s stock, currently trading at $0.82 with a market capitalization of approximately $15 million, has seen a significant decline of over 67% in the past year according to InvestingPro data. The notice, received on Monday, indicated that Mawson’s MVLS had been below the required $35.0 million threshold for 33 consecutive business days.

The company, which is incorporated in Delaware and has its principal executive offices in Midland, Pennsylvania, has been provided with a 180-day period, ending on July 23, 2025, to regain compliance with the MVLS Rule. During this period, Mawson’s stock will continue to trade on The Nasdaq Capital Market under the ticker symbol MIGI. Despite challenging market conditions, InvestingPro analysis shows the company achieved revenue growth of 25.45% in the last twelve months, with total revenue reaching $58.22 million. Discover 13 additional exclusive InvestingPro Tips to better understand MIGI’s market position.

To comply with Nasdaq’s MVLS Rule, Mawson’s MVLS must exceed $35.0 million for at least ten consecutive business days. Failure to meet this requirement by the end of the compliance period could lead to delisting, although the company would have the right to appeal such a decision.

In a separate event, Mawson and its subsidiaries, Luna Squares, LLC and Cosmos Infrastructure LLC, are engaged in arbitration proceedings with Celsius Network Ltd. and its affiliates. The dispute began on July 18, 2024, and involves claims by Celsius against Mawson and counterclaims by Mawson alleging unpaid invoices and breach of contract damages totaling over $121 million.

The arbitrator issued a Partial Final Award on January 23, 2025, in favor of Celsius, awarding monetary damages of $8,144,000, plus interest and attorney fees against Luna Squares, one of Mawson’s subsidiaries. The award does not directly affect Mawson Infrastructure Group Inc., and the company’s guarantee for the promissory note has not been adjudicated yet. Mawson continues to pursue its counterclaims against Celsius aggressively.

Mawson has cautioned that forward-looking statements in this report are subject to risks and uncertainties, and actual results may differ materially. These include the company’s ability to regain Nasdaq compliance and the ongoing arbitration’s outcome.

This news is based on Mawson Infrastructure Group Inc.’s recent SEC filing. According to InvestingPro analysis, the company currently appears undervalued compared to its Fair Value estimate, though investors should note its high volatility with a beta of 4.46 and concerning current ratio of 0.39, indicating potential liquidity challenges.

In other recent news, Mawson Infrastructure Group Inc. has disputed an involuntary Chapter 11 bankruptcy petition filed against it by Australian entities, W Capital Advisors Pty Ltd, and Marshall Investments MIG Pty Ltd. The company, which has not formally been served with the petition, plans to defend against the filing. Despite these legal challenges, Mawson Infrastructure continues to execute its business plan and has reported a 25.45% revenue growth over the last twelve months.

The company has also seen significant developments in its operations. Mawson Infrastructure reported a 65% year-over-year increase in revenue for September 2024, primarily driven by significant growth in its digital colocation business. The company’s third-quarter sales stood at $12.6 million.

Additionally, Mawson Infrastructure has acquired land in Perry County, Ohio, and announced a 20MW NVIDIA (NASDAQ:NVDA) GPU support deal with BE Global Development, a London-based private equity firm. These developments are expected to increase Mawson’s total power under management to 153MW. H.C. Wainwright, however, has maintained a Neutral rating for Mawson, expressing caution regarding the company’s growth prospects and operating leverage.

In the executive sphere, CEO Rahul Mewawalla was granted 2,500,000 restricted stock units under the company’s 2024 Omnibus Equity Incentive Plan, and the company announced the departure of Chief Development Officer Craig Hibbard and the appointments of new executives. These are the recent developments for Mawson Infrastructure Group Inc.

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