Stock exchanges suspended trading of Argo Blockchain shares after rumors of the company’s bankruptcy

A screenshot of a supposedly official statement from the firm was published by Will Foxley, Compass Mining's content director

12.12.2022 - 11:00

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What’s new? The London Stock Exchange (LSE) and New York Stock Exchange (NYSE) have suspended trading shares of Argo Blockchain (ARB), a mining company, without giving a reason. This came after information leaked on Twitter that the firm could file for Chapter 11 bankruptcy on December 12. This was reported by Will Foxley, Compass Mining's content director, who shared a screenshot of the company’s allegedly official statement. Foxley noted that the file was probably sent to him by mistake.

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

What is known about the company? Argo’s main mining center is located in Texas, with offices in the US, Canada, and the UK. Operations are primarily powered by renewable energy. The company is involved in several Web 3.0, DeFi, and GameFi projects through its Argo Labs arm.

In June, the company sold more than $15 million worth of BTC, and in August, it also sold $20 million worth of bitcoins to pay off a debt to investment firm Galaxy Digital. Argo has since lowered its hashrate growth estimate for the current year by 42%. Its losses for the first half of 2022 exceeded $44 million. On October 31, the company announced that a fundraising deal had failed, after which its shares plummeted by 52,72% in 24 hours. Argo said that it intends to seek other sources of financing.

The company sold 3843 Bitmain S19J devices worth $5,6 million to increase liquidity and preserve cash. Argo Blockchain’s total mining farm capacity is at 2,5 EH/s. The company’s securities were worth 6,7 British pounds sterling ($8,24) before trading was halted, according to Investing.com.

For whether oil and gas companies can take over the mining market, read GetBlock Magazine’s article.

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