Shares of publicly traded Bitcoin mining company Argo Blockchain were halted on Tuesday, December 27, ahead of an expected announcement on Wednesday, December 28. The shares had dropped by 96.34% in the first quarter of this year. On December 12, the miner revealed that it was in “advanced negotiations” with a third party to sell certain assets in order to “strengthen its balance sheet and improve its liquidity.”
Argo Blockchain Requests Stock Trading Pause Ahead of Official Announcement
On Tuesday, December 27, 2022, public traded Bitcoin miner Argo Blockchain (NasdaqARBK) requested a suspension of trading in its shares through Nasdaq and the London Stock Exchange. The company stated that trading will resume once the firm makes a major public statement the following day, December 28.
Argo is among the many Bitcoin mining companies that have been negatively impacted by the crypto winter. During the first week of November 2022, analysts at financial institutions Canaccord Genuity and Jefferies downgraded the miner’s stocks.
Another public Bitcoin mining organization, Core Scientific, petitioned for Chapter 11 bankruptcy protection last Wednesday, and in late September 2022, Compute North also filed for Chapter 11 bankruptcy, with the collective debts of the publicly traded mining firms surpassing $4 billion.
Argo also inadvertently posted documents that said it was filing for voluntary Chapter 11 bankruptcy protection. Nevertheless, documents from December 12, 2022 suggest the miner is in “advanced negotiations with a third party to sell certain assets.”
The organization additionally stated that it “is hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no guarantee that the company will be able to avoid such a filing.”
What do you think? Will Argo Blockchain make an announcement and suspend trading on Wednesday? Please let us know your thoughts on the topic in the comments below.
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