Argo Blockchain claims limited funds and “no confidence” it can escape bankruptcy
According to the cryptocurrency mining company, “inadvertently disclosed documents” led to its trading suspension on the London Stock Exchange and Nasdaq on December 9.
Argo Blockchain claims it has been discussing the sale of its assets and attempting to “enter into an equipment financing agreement” to avoid declaring bankruptcy.
Argo Blockchain said in a release dated December 12 that it was in the midst of “advanced talks” to sell some assets and was in danger of running out of money within a month. Although the mining business said that it had not filed for Chapter 11 bankruptcy in the United States, “inadvertently publicized documents” about the company’s financial status led to the suspension of trading on the LSE and Nasdaq on December 9.
Argo announced on December 12 that it had started trading on the London Stock Exchange, although at the time of publishing there was no data registered with the LSE. On December 8, shares of the mining company finished at $0.69 on the Nasdaq and at 6.70 pounds on the LSE.
“The Company is optimistic that it will be able to complete the deal without declaring for Chapter 11 bankruptcy in the United States, but there is no promise that it will be able to do so,” Argo added. “The Company has asked that the Financial Conduct Authority of the United Kingdom reinstate the listing of its ordinary shares, which is anticipated to occur as soon as possible.”
The mining company announced in October that it was in danger of experiencing negative cash flow “in the near future” if it failed to secure the necessary funds to maintain operations. Argo disclosed selling a portion of its Bitcoin assets to repay a loan from Galaxy Digital, from whom it received crypto-backed loan agreements in 2021.
Argo reported having 126 BTC and Bitcoin equivalents as of November 30. The price of the coin at the time of writing was $17,033.
Should Argo apply for Chapter 11 protection, it would be the latest crypto company to announce financial troubles during a bad market. In their critiques of the cryptocurrency business, several worldwide authorities and politicians have cited the failures of Terraform Labs, Celsius Network, Voyager Digital, BlockFi, and most recently FTX.