Bitcoin mining company Argo Blockchain has requested that trading of its shares and unsecured notes on the NASDAQ stock exchange be suspended until Wednesday.
The embattled company, which trades on both the NASDAQ and the London Stock Exchange (LSE), said it is set to make a significant announcement before the start of Wednesday trading. Only its shares on the NASDAQ have been paused.
This is set to include “inside information” and forward-looking statements regarding the firm’s “financial performance, business strategy, and plans and objectives of management for future operations.”
What Bitcoin Miners Are Doing to Survive the Bear Market
Cryptocurrency miners have a lot of fixed costs, like power, real estate, and the souped-up computers, or rigs, that do the actual mining. That’s why it can be hell for their margins when the market takes a nosedive and dramatically drops the value of whatever funds they were holding in crypto, such as Bitcoin. And now that the crypto market is in what appears to be a prolonged bear market, miners are being forced to adjust. The global market capitalization of crypto is roughly $1 trillion today...
The news comes as Argo, like many other mining firms, is undertaking serious measures to restructure its operations amid an uncertain future for the sector.
In a filing revealed earlier this month, the company said that it was in “advanced negotiations” with an unnamed third party to support its ongoing business operations due to it having “insufficient cash,” saying it hoped to complete these transactions without having to file for Chapter 11 Bankruptcy.
These negotiations are said to include plans to sell “certain assets” to a third party and to undergo an equipment financing deal that it hopes will “strengthen its balance sheet and improve its liquidity.”
Argo has been attempting to raise funds throughout much of the tail end of 2022, as it has been badly impacted by factors such as high energy costs and falling Bitcoin prices. The firm has seen its stock fall over 95% over the course of the year.
The company began selling off its Bitcoin reserves back in June, earmarking the capital for funding operating expenses.
In October, Argo failed to finalize a planned £24 million ($27 million) fundraising that saw its stock price fall a stark 40%.
Rocky landscape for crypto miners
It’s not just Argo that’s looking toward restructuring, as investor confidence seems minimal at best.
Embattled miner Greenidge Generation said earlier this month that there was “substantial doubt” about its capacity to continue as a business, agreeing to new repayment terms that will see its debts reduced by approximately “$57 million to $68 million.”
Bitcoin Miner Greenidge Says Continued Viability in ‘Substantial Doubt’
Another crypto miner may be teetering towards bankruptcy. Bitcoin miner Greenidge announced that there is “substantial doubt” about its capacity to continue as a business, saying that its Board of Directors has actively discussed the possibility of voluntary bankruptcy. “There remains uncertainty regarding Greenidge’s financial condition and substantial doubt about its ability to continue as a going concern,” the statement read. The company claims that its average monthly cash burn rate during...
But these types of measures haven’t been enough to shore up the fortunes of others. Core Scientific, one the largest players in the industry, filed for Chapter 11 bankruptcy protection in Texas last week, citing low Bitcoin prices and high overhead costs.
