Bitcoin Miner Argo Blockchain Halts Trading on Nasdaq Amid Upcoming Announcement
The suspension of trading activity is due to a major announcement from the Argo blockchain on Wednesday. Earlier this month, Nasdaq suspended trading activity for the Bitcoin miner amid rumors of the bankruptcy filing.
On Tuesday, December 27, Bitcoin miner Argo blockchain announced that it has suspended trading on the Nasdaq platform due to an upcoming announcement expected on Wednesday.
Argo Blockchain Trading on Nasdaq
It is a temporary suspension and trading in American Depositary Shares (ADS) will resume again on Wednesday. In its press release, Argo blockchain said it has to suspend trading due to an announcement on Wednesday, and also because the London Stock Exchange was closed on December 27.
At our request, @Nasdaq temporarily suspended trading in Argos ADSs and unsecured notes for today – Tuesday 27 December.
We will make an announcement tomorrow (December 28) via RNS before @LSEplc opens in the UK … we expect trading on the Nasdaq to resume tomorrow.#ARB $ARBK #BTC
— Argo (@ArgoBlockchain) 27 December 2022
As mentioned, the UK-based bitcoin miner is also listed on the London Stock Exchange. Argo blockchain had temporarily suspended trading earlier this month after it announced it was at risk of insufficient funds to support internal operations.
The latest development on Tuesday once again puts investors on the edge of being worried about the company’s operations.
Is Argo on the brink of bankruptcy?
Earlier this month, Bitcoin miner Argo blockchain accidentally published the draft material on its website, adding that it has inadvertently filed for Chapter 11 bankruptcy protection in the United States. In response, Nasdaq and the London Stock Exchange suspended trading in their shares. However, Argo blockchain later clarified that it has not filed for bankruptcy and asked the exchanges to resume trading in its shares.
Instead, the Bitcoin miner said it was in advanced negotiations with a third party to sell certain assets while securing equipment financing. Argo Blockchain noted:
“The Company is hopeful that it will be able to complete the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no guarantee that the Company can avoid such a filing.”
Earlier in October, Argo had also warned that it could become cash-flow negative if it failed to raise money after the financial deal went through. In such a case, the company may have to stop operations.
In another update on Dec. 16, Argo said it has faced negative attention from Nasdaq since its share price traded below $1 for 30 consecutive days. If the company fails to get its share price back above $1 in the next 180 days, it could be at risk of being delisted from the Nasdaq.
New RNS: we received notice from @Nasdaq since our ADSs have closed below $1 for 30 trading days
We have 180 days to cure this deficiency
No impact on our business or LSE listing, and no impact on our ongoing negotiations
Full RNS: https://t.co/Au3txnlkHL
#ARB $ARBK #BTC— Argo (@ArgoBlockchain) 16 December 2022
2022 has been one of the toughest years for Bitcoin mining companies. Some of the top players such as Riot Blockchain, Marathon Digital, Core Scientific, Agro Blockchain and Bitfarms have all announced bankruptcies. Amid this development, ASIC miner prices have also fallen to multi-year lows.
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Bhushan is a FinTech enthusiast and has a keen flair for understanding the financial markets. His interest in economics and finance draws attention to the emerging markets of blockchain technology and cryptocurrency. He is continuously in a learning process and stays motivated by sharing his acquired knowledge. In his spare time, he reads thriller novels and sometimes explores his culinary skills.
