- Windtree Therapeutics will be suspended from Nasdaq trading for not meeting the $1 minimum bid price requirement.
- The company’s share price fell to $0.11, dropping 77% in a single day.
- Last month, Windtree announced a plan to buy up to $700 million in Binance’s BNB token, aiming to shift strategy into digital assets.
- Windtree will move trading to the over-the-counter (OTC) market under the ticker WINT, which has less strict requirements than Nasdaq.
- Experts caution that distressed companies pivoting to digital asset treasuries often lack long-term stability or substance beyond the initial announcement.
Windtree Therapeutics, a drug development firm based in Pennsylvania, confirmed that its stock will be suspended from Nasdaq trading on Thursday for not maintaining the required $1 minimum share price. This move follows a series of compliance issues over recent years.
According to an SEC filing published Tuesday, Windtree shares fell sharply to $0.11, losing 77% of their value in a single day. The company announced in late July that it would allocate up to $700 million to Binance’s BNB token, hoping the pivot to digital assets would lift its stock above listing standards.
Despite briefly regaining compliance in March, Windtree fell back below the $1 threshold as the crypto market declined in the past week. The Nasdaq exchange has given the company multiple deficiency notices since June 2022, with the latest in December last year.
The company will now trade its shares on the over-the-counter (OTC) market under the same ticker symbol, WINT. OTC venues have looser requirements and lower trading volumes compared to Nasdaq.
Ryan Yoon, a senior analyst at Tiger Research, told Decrypt, “Distressed firms face a structural mismatch with DAT models. While they may initially raise funds despite lacking credibility, subsequent capital raises become increasingly difficult as market skepticism grows.” Digital asset treasury (DAT) models rely on having a premium net asset value (NAV), which is the total value of a company’s assets minus liabilities per share. Yoon explained that distressed companies struggle to maintain these NAV premiums, especially amid market downturns, potentially leading to asset declines and forced sell-offs.
Several other publicly traded crypto-focused companies, such as KindlyMD, SharpLink, Coinbase, and Strategy, have also seen their stocks slide recently along with the broader crypto market. Experts point out that while some firms, like Michael Saylor’s Strategy, have found success using a digital asset treasury model, struggling firms often lack a solid operational foundation for such strategies, making long-term stability difficult.
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