The London and New York stock exchanges halted trading in Argo Blockchain shares without giving a reason. The community awaits a statement from the mining company about bankruptcy.
Argo is preparing for a bankruptcy on Monday, per a screenshot of a document sent my way (likely accidentally posted). https://t.co/aXmFuMNSXF pic.twitter.com/kQtLwZOKct
— Will Foxley 🧭 (@wsfoxley) December 9, 2022
The PR director of Compass Mining, William Foxley, said he had received a screenshot of the relevant statement. He previously worked at CoinDesk.
Securities trading suspensions often occur before the publication of significant corporate news.
Since the start of the year, Argo Blockchain’s market capitalization has fallen 93.1%, and 98% from its ATH.
In late October Argo Blockchain reported serious funding problems and possible cessation of cryptocurrency mining operations. At that time, top management acknowledged that the deal to sell the company’s shares to a strategic investor for £24 million to bolster working capital had fallen through.
On December 9, Argo Blockchain said that they remained in negotiations to “provide the firm with working capital sufficient for its current needs”.
In November, the company mined 198 BTC (October – 204 BTC), generating revenue of $3.46 million ($4 million). By month-end Argo Blockchain held 126 BTC on its balance sheet.
Earlier, warned of potential insolvency by one of the largest players in the industry — Core Scientific.
Previously ForkLog reported that miners faced difficulties amid market stagnation, rising energy costs, and a fall in hashrate.
According to Arcane Research, the vast majority of publicly traded companies in the sector posted an accumulated deficit on their balance sheets, despite a strong 2021.
In November, many industry players were forced to liquidate mining equipment to cover losses from the market downturn, according to reports.
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