Argo Blockchain, a cryptocurrency mining company, has reportedly filed for bankruptcy by mistake. However, this indicates that the company is preparing for bankruptcy. Meanwhile, the decrease in the company’s monthly income drew attention. Here are the details…
Crisis signals in cryptocurrency mining company
There has been news of a potential bankruptcy from popular cryptocurrency mining company Argo Blockchain. It turned out that he had filed for bankruptcy by mistake recently. However, this has accelerated the claims that the company is preparing for bankruptcy. This news was reported by Compass Mining Content Director Will Foxley, who shared a screenshot of Argo Blockchain’s December 12 special announcement.
Argo is preparing for a bankruptcy on Monday, per a screenshot of a document sent my way (likely accidentally posted). https://t.co/aXmFuMNSXF pic.twitter.com/kQtLwZOKct
— Will Foxely (Denver Nugget Account ⛏️) (@wsfoxley) December 9, 2022
The announcement indicates that Argo may be preparing to file for bankruptcy, according to a screenshot of a document released by Foxley. Additionally, on December 9, it was reported that Argo’s shares were temporarily suspended by the UK Financial Conduct Authority (FCA) after the company announced a decline in November revenue.
Argo shares fell 70 percent
Trading of shares of London-based Argo Blockchain (ARBK) was also suspended in the US outside the UK on Friday, it was revealed. The exact reason for the suspension was not disclosed, but this points to the prospect of bankruptcy. At the end of October, Argo stated that its deal to raise $27 million from a strategic investor had failed. He said that this caused his shares to lose more than 70 percent of value. In a statement to the London Stock Exchange, the company used the following statements:
Should Argo fail to complete further financing, Argo will have negative cash flow in the near term and will have to cut back or cease operations.
In the November operational update released on Friday, Argo made a statement. He said he is continuing financing talks to “provide the company with sufficient working capital for its current needs.” “There will be another statement when the time comes,” he added. Argo and many other publicly traded Bitcoin miners have recently suffered from a combination of falling crypto prices and rising energy costs.
Decline in the amount of BTC produced by the company
Argo shares began falling in early October when it announced a series of strategic actions. These include moves such as the sale of Bitcoin mining rigs. Argo stated that the firm went on sale in Bitcoin mining rigs to fulfill its obligations and implement its strategy.
In addition, as we reported as Kriptokoin.com, there was a decrease in the number of Bitcoins produced by Argo on a monthly basis. The November update showed 198 BTC mined per month compared to 204 BTC in October. Additionally, the report revealed that revenues fell from $4.0 million to $3.46 million in the previous month.
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