Argo Blockchain Announces Suspension of Company Shares on Nasdaq, Here's Why!

Bitcoin mining company Argo Blockchain has suspended trading of its shares. (Photo; Doc. Argo Blockchain)

JAKARTA – The leading Bitcoin mining company, Argo Blockchain, which has been listed on the Nasdaq stock exchange and the London Stock Exchange, reportedly suspended its share trading on December 27 yesterday. The company plans to announce it on December 28.

Argo Blockchain seems to be affected by a prolonged bear market that lasted more than six months. The bear market started with the collapse of Terra LUNA in May which affected various related crypto companies, including BlockFi, 3 Arrows Capital, Voyager, and others.

Argo Blockchain (ARBK) shares have lost 96.34 percent year-over-year and on December 12, the bitcoin miner was "continuing negotiations with a third party to sell certain assets" to "strengthen its balance sheet and increase its liquidity."

On Tuesday, December 27, 2022, publicly listed bitcoin miner Argo Blockchain announced that it had requested a suspension of trading of its stock through the Nasdaq and the London Stock Exchange as well.

Reported by Coinspeaker, Argo revealed that the announcement is “expected to be released before [opening] trading on Wednesday.” Argo is one of many bitcoin mining operations that has suffered heavily financially from the crypto winter. During the first week of November 2022, Argo's shares were listed by financial institution Canaccord Genuity and analyst Jefferies.

Another publicly listed bitcoin mining competitor, Core Scientific, filed for Chapter 11 bankruptcy protection last week, and in late September 2022, Compute North filed for Chapter 11 bankruptcy protection. Statistics show that publicly traded mining companies collectively owe more than 4,000 euros in debt. billion US dollars.

In addition, Argo inadvertently published documentation saying it had voluntarily filed for Chapter 11 bankruptcy protection. Documents from December 12, 2022, however, show the miner is in “advanced negotiations with a third party to sell certain assets.”

The company further said Argo "expects that they will be able to complete the transaction outside of voluntary Chapter 11 bankruptcy filings in the United States, although there is no assurance that the company will be able to avoid such filings."