Is Argo Blockchain insolvent? In view of a document from yesterday, Monday, December 12, the economic situation of the London mining company is precarious to say the least. The company’s letter to the London Stock Exchange stated: ‘There is a risk that the company will not have sufficient liquidity to support ongoing operations over the next month.’ One is currently in the process of liquidating some of its assets in order to “strengthen the balance sheet total”.
It is unclear whether this means the liquidation of Bitcoin (BTC) or ASIC miners. We want to anticipate the voluntary filing for bankruptcy in accordance with Chapter 11 of the American bankruptcy law.
One Misstep Leads to Suspension of Trading in Mining Stocks
According to management, Argo is not yet bankrupt. A document mistakenly uploaded to the company’s website, which announced the company’s insolvency, was only used for testing purposes. Despite this, the London Stock Exchange suspended trading in the shares until further notice; the re-listing of the shares is expected soon. As of this writing, this has not happened.
One wonders if Argo can get his head out of the noose. In early November, BTC-ECHO reported a failed $27 million funding round. An investor had likely jumped out of the multimillion-dollar debt round shortly before the underwriting. At the time, the miner had already sold its assets and released a total of 3,843 Bitmain S19J Pro series ASICs for US$5.6 million.
Meanwhile, Argo Blockchain is not the only listed mining company facing immense economic pressure. The toxic mix of high hash rates, low bitcoin prices, and rising energy prices are causing problems for the entire industry. In the current BTC-ECHO magazine, we analyze the complex situation – and examine which mining actions could still be worthwhile.
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