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0 CommentsBitcoin miner Argo Blockchain requested that trading be temporarily suspended on Nasdaq ahead of Wednesday’s open. The miner said two weeks ago that it was in “advanced negotiations with a third party” to sell certain assets to avoid filing for bankruptcy.
Argo Blockchain, the UK-based company, is also listed on the London Stock Exchange, which is closed Tuesday and where trading was temporarily suspended earlier this month after the company accidentally published draft materials on its website saying that it was voluntarily filing for Chapter 11 bankruptcy protection in the US.
Trading is expected to resume on Dec. 28, the company said in a statement.
Previously, the miner said that it was in “advanced negotiations with a third party” to sell certain assets and secure equipment financing.
“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,” Argo said on Dec. 12.
The miner warned in October that it would become cashflow negative if it failed to raise money after a financing deal fell through. At the time, the company said it would also have to cease operations in that scenario.
Earlier, another large public Bitcoin mining company, Core Scientific, which provides 10% of the Bitcoin network, declared bankruptcy. The move follows a year of plunging cryptocurrency prices and rising energy prices.
Meanwhile, Greenidge Generation, a vertically integrated crypto miner, reported second quarter net losses of more than $100 million in August and hit “pause” on plans to expand into Texas. And shares in Argo plunged 60% after its announcement on Oct. 31 that its plan to raise $27 million with a “strategic investor” was no longer happening.
