Mining company argo blockchain has requested that trading of its shares and unsecured notes on the nasdaq stock exchange be suspended until wednesday. argo is in advanced negotiations with an unnamed third party to support its ongoing business operations due to it having “insufficient cash”. the company 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.
Request to suspend trading of argo’s shares was made on monday, and the company is set to make a significant announcement before the start of wednesday trading, which will include “inside information” and forward-looking statements regarding the firm’s “financial performance, business strategy, and plans and objectives of management for future operations.” argo trades on both the nasdaq and the london stock exchange (lse).
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 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%. 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.” 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. argo’s stock has fallen over 95% over the course of the year.
Is undertaking serious measures to restructure its operations amid an uncertain future for the sector. the negotiations with the unnamed third party 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.” investor confidence in the mining sector seems minimal at best. argo hopes to complete its negotiations with the unnamed third party without having to file for chapter 11 bankruptcy.
https://decrypt.co/118003/bitcoin-miner-argo-blockchain-suspends-trading-nasdaq
