Why is Bitcoin Miner Argo Blockchain Stopping Trading on NASDAQ?
Argo Blockchain, a Bitcoin mining and technology company, has been making desperate attempts to parry the effects of high energy costs and falling BTC prices – both kryptonite to the business.
Indeed, during the first few days of December, the company admitted that it is crossing its fingers to avoid filing for Chapter 11 bankruptcy by engaging in what it termed advanced negotiations.
At the other end of the negotiating table is an unnamed party that Argo Blockchain hopes will support its business as it does not have enough funding to continue operations.
At the time, among those considered by the company to cope were selling some of its assets and securing equipment financing to polish its thin balance sheet and improve liquidity.
Image: Sharecast
What is happening at Argo Blockchain?
Ahead of an important announcement it is set to make on Wednesday, the Bitcoin mining company has Requested that trading in its shares as well as unsecured certificates on the NASDAQ exchange is put on hold until the said day.
Although details of the upcoming public information sharing are limited, it is expected that Argo Blockchain’s statement will most likely include first-hand information about current financial results and business strategy.
In addition, the announcement may affect the agenda for future operational plans and objective management.
Meanwhile, on the matter of the request, at the time of writing, only the stock trading is suspended on NASDAQ. Argo Blockchain shares are traded on both NASDAQ and the London Stock Exchange (LES).
To say that the company has been badly affected by the bearish momentum of Bitcoin is an understatement as over the year the stock has already lost 95% of its value.
Crypto total market cap at $759 billion on the daily chart | Chart: TradingView.com
Crypto miners on the losing end of the bear market
Bitcoin, the largest cryptocurrency by market capitalization, faces the possibility of exiting 2022 with a trading price below $17,000, as it failed to replicate the incredible run it had last year when it reached its current all-time high (ATH).
With this, companies like Argo Blockchain are expected to do so take a hard hit since their income depends heavily on the price of BTC.
Greenidge Generation, another mining company, is riding the same boat as Argos, when it revealed earlier this month that there are significant doubts about its ability to continue operating.
Core Scientific, considered one of the biggest players in the industry, has already filed for Chapter 11 bankruptcy protection as high overhead costs and falling Bitcoin prices hit its operations hard.
