The cryptocurrency mining company Argo Blockchain has reported that it had been negotiating to sell assets and “participate in an equipment financing transaction” in an effort to avoid filing for bankruptcy.
In a December 12 announcement, Argo Blockchain said it was at risk of not having sufficient funds to continue operating within a month, and was in the midst of “advanced negotiations” to sell certain assets. Although the mining company said it had not filed for Chapter 11 bankruptcy in the United States, “inadvertently published materials” related to the company’s financial situation led to a suspension of trading on the London Stock Exchange, or LSE, and Nasdaq on December 9.
Argo reported that it had resumed trading on the London Stock Exchange from December 12, but there was no data on the LSE at the time of publication. Shares of the mining company closed at USD 0.69 on the Nasdaq on December 8, and at £6.70 on the LSE.
“The Company is confident that it can consummate the transaction regardless of a voluntary filing for Chapter 11 bankruptcy in the United States, although there are no guarantees that the Company will be able to avoid such a filing,” Argo said. “The Company has requested that the UK Financial Conduct Authority reinstate the listing of its ordinary shares and this is expected to occur as soon as possible.”
New RNS just out with an update on the restoration of trading on the LSE: https://t.co/6vH9PX8SET#ARB $ARBK #BTC pic.twitter.com/Oqu7oZ9sSH
— Argo (@ArgoBlockchain) December 12, 2022
The mining firm said in October that it risked going cash flow negative “in the near term” if it failed to raise the capital needed to continue operations. Amid the bear market, Argo reported that it sold some of its Bitcoin (BTC) mined holdings to repay a loan from Galaxy Digital, from which it secured crypto-backed loan deals in 2021.
As of November 30, Argo declared possession of 126 BTC and Bitcoin equivalents. The price of the cryptocurrency was $17,033 at press time.
Should Argo file for Chapter 11, it would be the latest in a series of cryptocurrency companies to report financial difficulties amid a bear market. Many global regulators and lawmakers have pointed to the collapse of Terraform Labs, Celsius Network, Voyager Digital, BlockFi, and most recently FTX in their criticism of the cryptocurrency market.
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