Bitcoin Miner Argo Blockchain Suspends Trading on NASDAQ
Bitcoin mining company Argo Blockchain has requested that trading of its shares and unsecured notes on the NASDAQ stock exchange be suspended until Wednesday.
The embattled company, which trades on both the NASDAQ and the London Stock Exchange (LSE), said it is set to make a significant announcement before the start of Wednesday trading. Only its shares on the NASDAQ have been paused.
This is set to include “inside information” and forward-looking statements regarding the firm’s “financial performance, business strategy, and plans and objectives of management for future operations.”
The news comes as Argo, like many other mining firms, is undertaking serious measures to restructure its operations amid an uncertain future for the sector.
In a filing revealed earlier this month, the company said that it was in “advanced negotiations” with an unnamed third party to support its ongoing business operations due to it having “insufficient cash,” saying it hoped to complete these transactions without having to file for Chapter 11 Bankruptcy.
These negotiations are said to include plans to sell “certain assets” to a third party and to undergo an equipment financing deal that it hopes will “strengthen its balance sheet and improve its liquidity.”
Argo has been attempting to raise funds throughout much of the tail end of 2022, as it has been badly impacted by factors such as high energy costs and falling Bitcoin prices. The firm has seen its stock fall over 95% over the course of the year.
The company began selling off its Bitcoin reserves back in June, earmarking the capital for funding operating expenses.
In October, Argo failed to finalize a planned £24 million ($27 million) fundraising that saw its stock price fall a stark 40%.
Rocky landscape for crypto miners
It’s not just Argo that’s looking toward restructuring, as investor confidence seems minimal at best.
Embattled miner Greenidge Generation said earlier this month that there was “substantial doubt” about its capacity to continue as a business, agreeing to new repayment terms that will see its debts reduced by approximately “$57 million to $68 million.”
But these types of measures haven’t been enough to shore up the fortunes of others. Core Scientific, one the largest players in the industry, filed for Chapter 11 bankruptcy protection in Texas last week, citing low Bitcoin prices and high overhead costs.