Bitcoin mining giant Argo Blockchain has requested trading of its shares and unsecured notes on the NASDAQ stock exchange be suspended until December 28th.
The company, which trades on both the NASDAQ and the London Stock Exchange (LSE), said that it wants to make an announcement before resuming its trade on Wednesday.
- The latest development comes just two weeks after Argo warned that it is at risk of holding “insufficient cash” to keep up with its operations in the next month.
- Its plan to secure $27 million in partnership with an investor through a share subscription also fell through in October.
- The Bitcoin miner was then reported to be in advanced negotiations with a third party to sell some of its assets and conduct an equipment financing transaction to boost its balance sheet and enhance liquidity, as per a filing with the London Stock Exchange.
- However, Argo had expressed hopes to execute a deal without filing for Chapter 11 bankruptcy while adding that “there is no assurance that the company can avoid such a filing.”
- McDermott Will & Emery LLP are acting as legal advisers, while Berkeley Research Group was appointed as the embattled company’s financial adviser.
- Argo revealed mining 198 bitcoins in November, a drop from 204 in the month prior, due to an increase in the Bitcoin network difficulty.
- As a result of the market-wide slump, the London-based crypto miner’s stock is down more than 95% this year from $12.7 to $0.53 at press time.