Argo Blockchain, a bitcoin mining business, has asked for the NASDAQ stock exchange to halt trade in its shares and unsecured notes until Wednesday.
The troubled corporation, which is listed on both the NASDAQ and the London Stock Exchange (LSE), stated it plans to make a big announcement before the opening of trading on Wednesday. Only its NASDAQ-listed shares have been put on hold.
The firm’s “financial performance, business strategy, and plans and objectives of management for future operations” will be covered in this, along with “inside information” and forward-looking statements.
The news comes at a time when Argo, like many other mining companies, is making big changes to its operations because of the uncertain future of the industry.
In a filing made public earlier this month, the business stated that it was in “advanced negotiations” with an unidentified third party to support its ongoing business operations because it lacked “enough funds.” The business expressed its hope that these transactions would be completed in order to avoid having to declare Chapter 11 bankruptcy.
Reports say that the company wants to transfer “certain assets” to a third party and enter into a financing agreement for the equipment to “strengthen its balance sheet and increase its liquidity.”
As a result of reasons including high energy expenses and declining Bitcoin prices, Argo has been actively trying to generate money throughout most of the latter half of 2022. Over the year, the company’s stock has fallen by more than 95%.
To pay for operating costs, the corporation started selling off its Bitcoin holdings back in June.
When Argo’s planned £24 million ($27 million) financing effort in October fell through, its stock price plunged sharply by 40%.
Argo is hardly the only company considering reorganization; investor confidence is at best scant.
Greenidge Generation, a troubled miner, stated earlier this month that there was “serious question” over its ability to operate as a business. As a result, it consented to new repayment terms that will result in a “$57 million to $68 million” reduction in its obligations.
However, the fortunes of others have not been sufficiently supported by these kinds of actions. One of the major competitors in the market, Core Scientific, filed for Chapter 11 bankruptcy protection in Texas last week, blaming the low price of bitcoin and heavy overhead expenses.