Argo Blockchain Requests a 24-hour Trading Suspension of US Shares
Bitcoin miner Argo Blockchain requested a 24-hour suspension of trading for its US-listed shares as the company prepares to make a major announcement related to its financial performance and business strategy. Trading of Argo’s shares on the Nasdaq exchange is expected to resume on Dec. 28.
Trading of Argo Blockchain’s US-listed Shares to Continue on Dec. 28
Argo Blockchain filed a request with the Nasdaq stock exchange, asking for a 24-hour suspension of US trading for its American Depositary Shares (ADSs) and unsecured notes listed on the Nasdaq Global Select Market, the bitcoin miner said in a press release Tuesday. The request comes as Argo prepares to make an announcement before the trading continues on Wednesday, Dec. 28.
“This announcement contains inside information and includes forward-looking statements which reflect the Company’s or, as appropriate, the Directors’ current views, interpretations, beliefs or expectations with respect to the Company’s financial performance, business strategy and plans and objectives of management for future operations.”– Argo Blockchain said in a press releas.e
Argo is also listed on the London Stock Exchange (LSE), which is closed on Tuesday. Trading of Argo’s shares on the LSE was halted earlier this month after the bitcoin miner accidentally released draft materials showing the firm was voluntarily filing for Chapter 11 bankruptcy protection in the US.
The troubled crypto miner downplayed the leak, saying it was instead in “advanced” talks with a third party to sell some assets and raise equipment financing. Argo added it hopes it will manage to “consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no assurance that the company can avoid such a filing,” it said in a release on Dec. 12.
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Argo Continues to Underperform the Crypto Mining Market
Argo has been attempting to secure $25-$35 million in funding over the past few months to keep itself afloat amid financial difficulties. But the company said last month its deal to sell $27 million of equity collapsed and warned it could have a negative cash flow, leading to analysts downgrading the bitcoin miner’s stock.
On a more positive note, the crypto mining firm repaid its $6.7 million debt to Mike Novogratz’s Galaxy Digital, according to Argo’s operational update published in November. While its mining margin increased to 7%, the operational update showed Argo mined less bitcoin in October on a sequential basis due to several Bitcoin network difficulty increases in 2022.
The company’s LSE-listed shares are down more than 96% in 2022, underperforming the rest of the crypto mining market. Several crypto miners have capitulated this year amid crushed crypto prices, high-interest rates by the Fed, and hefty debt piles.
Do you expect Argo Blockchain to survive the current downturn? Let us know in the comments below.