The suspension of trading activity follows a significant announcement made by Argo Blockchain on Wednesday. Earlier this month, the Nasdaq suspended trading activity for its Bitcoin he miner following rumors of a bankruptcy filing.
On Tuesday, Dec. 27, Bitcoin miner Argo Blockchain announced that it had suspended trading on the Nasdaq platform due to its next announcement on Wednesday.
Argo Blockchain Trading on Nasdaq
This is a temporary suspension and trading of American Depositary Shares (ADS) will resume on Wednesday. In a press release, Argo Blockchain said trading had to be halted following Wednesday’s announcement and the closure of the London Stock Exchange on December 27.
at our request, @Nasdaq On Tuesday, December 27, we temporarily suspended trading of Argo’s ADSs and unsecured bonds.
— Argo (@ArgoBlockchain) December 27, 2022
As mentioned earlier, UK-based Bitcoin miners are also listed on the London Stock Exchange. Argo Blockchain temporarily halted trading earlier this month after it announced it was at risk of running out of funds to support its internal operations.
Recent developments on Tuesday have once again raised concerns about the company’s operations among investors.
Is Argo on the brink of bankruptcy?
Earlier this month, Bitcoin miner Argo Blockchain accidentally published draft material on its website, adding that it had inadvertently filed for Chapter 11 bankruptcy protection in the United States. In response, the Nasdaq and London Stock Exchange suspended trading of the shares. However, Argo Blockchain has since clarified that it has not filed for bankruptcy and has asked the exchange to resume trading its shares.
Instead, Bitcoin miners said they are pre-negotiating with third parties to sell certain assets while securing financing for their equipment.
“While the company expects to be able to complete the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, there can be no assurance that such filing can be avoided.”
Earlier in October, Argo warned that it could become cash flow negative if it fails to raise funds after a failed financial transaction. You may have to
In a separate update on Dec. 16, Argo said it faced negative attention from the Nasdaq after its stock traded below $1 for 30 straight days. If the stock fails to rise above $1 again within the next 180 days, it could be delisted from the Nasdaq.
Received notification from new RNS: @Nasdaq As ADS fell below $1 in 30 trading days
You have 180 days to fix this flaw
No impact on our business or listing on LSE, no impact on ongoing negotiations
— Argo (@ArgoBlockchain) December 16, 2022
2022 will be one of the toughest years for Bitcoin mining companies. Some of the top players like Riot Blockchain, Marathon Digital, Core Scientific, Agro Blockchain and Bitfarms have all announced bankruptcy. Amid these developments, ASIC miner prices have also fallen to multi-year lows.
Bhushan is a FinTech enthusiast and has a great knack for understanding financial markets. His interests in economics and finance focus on the emerging blockchain technology and cryptocurrency market. He is in a continuous learning process and keeps himself motivated by sharing what he has learned. In his free time, he reads thriller novels and sometimes develops his cooking skills.