According to the mining firm, “inadvertently published materials” led to the suspension of trading of Argo Blockchain.
In an effort to avoid declaring bankruptcy, the cryptocurrency mining company Argo Blockchain has revealed that it has been in talks to sell assets and “engage in an equipment financing transaction.”
In a Dec. 12 release, Argo Blockchain stated that it was in the midst of “advanced negotiations” to sell specific assets and that it was in danger of running out of money within a month.
The London Stock Exchange, or LSE, and Nasdaq suspended trading on December 9 despite the mining company’s claims that it had not filed for Chapter 11 bankruptcy in the US.
This was due to “inadvertently published materials” about the company’s financial situation. Argo claimed that as of Dec. 12, it had resumed trading on the London Stock Exchange, however at the time of publication, the LSE had no data to support this claim.
On December 8, the mining company’s shares finished at $0.69 on the Nasdaq and 6.70 pounds on the LSE.
“The Company 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 assurance that the Company can avoid such a filing,” said Argo.“The Company has requested that the UK Financial Conduct Authority restore the listing of its ordinary shares and that is expected to happen as soon as practicable.”
If the mining company cannot raise the necessary funds to maintain operations, it will be at risk of going into the “short term” cash flow negative. Argo reported selling some of its mined Bitcoin (BTC $17,174) during the bear market, assets to settle a Galaxy Digital loan from which it obtained 2021 crypto-backed loan agreements.
Argo reported owning 126 Bitcoin and its equivalents as of Nov. 30. At the time of publication, the coin had a value of $17,033.If Argo were to declare bankruptcy, it would be the most recent in a line of cryptocurrency companies to claim financial problems during a bear market.
Many international regulators and lawmakers have criticized the cryptocurrency business, citing the failure of Terraform Labs, Celsius Network, Voyager Digital, BlockFi, and most recently FTX.
