Why is Bitcoin Miner Argo Blockchain suspending trading on NASDAQ?

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Argo Blockchain, a bitcoin mining and technology company, has made desperate attempts to parry the effects of high energy costs and falling BTC prices, the two kryptonites to its business.

In fact, in the early days of December, the company admitted it was keeping its fingers crossed to avoid filing for Chapter 11 bankruptcy by engaging in what it called advanced negotiations.

At the other end of the trading table is an anonymous party, Argo Blockchain, which hopes to support its business as it faces insufficient funding to continue its operations.

At that time, among those the company was considering to make ends meet were selling some of its assets and securing equipment financing to improve its thinning balance sheet and improve cash flow.

Image: Sharecast What’s going on at Argo Blockchain?

Ahead of a major announcement it is due to make on Wednesday, the bitcoin mining company has requested that trading of its shares as well as unsecured notes on the NASDAQ exchange be suspended until that day.

While details on upcoming public information sharing are limited, it is expected that Argo Blockchains’ statement will most likely include first-hand information on its current financial performance and business strategy.

In addition, the announcement could affect the agenda of future operations plans and the management of objectives.

Meanwhile, regarding his claim, at the time of writing, only his stock trades have been suspended on NASDAQ. Argo Blockchain shares trade on both NASDAQ and the London Stock Exchange (LES).

To say the company has been hit hard by Bitcoin’s bearish momentum is an understatement as its shares, over the course of the year, have already lost 95% of their value.

Total Crypto Market Cap At $759 Billion On Daily Chart | Chart: TradingView.com Crypto Miners on the Losing End of the Bear Market

Bitcoin, the largest cryptocurrency by market capitalization, faces the possibility of exiting 2022 with a trading price below $17,000 as it failed to replicate the incredible run it had last year when it reached its current all-time high (ATH).

With this, companies like Argo Blockchain are expected to be hit hard as their revenue is highly dependent on the price of BTC.

Greenidge Generation, another mining company, is in the same boat as Argos as it revealed earlier this month that there is substantial doubt about its ability to continue doing business.

Core Scientific, considered one of the biggest players in the industry, has already filed for Chapter 11 bankruptcy protection as high overhead costs and falling Bitcoin prices have dealt a heavy blow. to its operations.

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