Argo Blockchain, an international leader in the crypto mining sector, has asked for the suspension of its ADS shares on Nasdaq. The crypto miner said trading would resume on December 28th after an important announcement.
Is Argo Blockchain Filing For Bankruptcy?
According to Argo Blockchain, the announcement will come before trading begins on December 28th. On December 9th, the company suspended the trading of the ARBK, the London-based Argo Blockchain shares in the US and the UK.
Unfortunately, the firm did not give any reason for the suspension. Earlier in December, Argo Blockchain released its November operation update.
At the time, the crypto miner noted that it was working with a third party to sell certain assets. The aim was to obtain capital to help the firm cater to its operations.
The company promised to provide more details of the discussions in due time. Meanwhile, Argo and other crypto miners have suffered huge losses lately.
The falling prices of cryptocurrencies and increasing energy costs have made crypto mining less profitable. Several miners have sold their assets in the heat of the crypto winter to keep up with production activities.
Others sold mined BTC to pay part of their loans. The shares of Argo Blockchain started falling at the beginning of October. This was after the company announced its plans to cushion the effect of the crypto crisis.
The crypto miner then announced that it wanted to sell some of its BTC mining rigs to meet its obligations. Furthermore, the company’s November update revealed that it mined 198 BTC in November.
This was low compared to the 204 BTC it mined in October. In addition, Argo said revenue dropped from $4 million in October to $3.46 million last month.
Argo Blockchain’s Rival Files For Bankruptcy
Although Argo Blockchain is yet to file for Chapter 11 bankruptcy, its competitor, Core Scientific, filed for bankruptcy last Wednesday. It is worth noting that Core Scientific is the largest BTC miner according to computational power.
The company filed for bankruptcy after witnessing a terrible year due to the fall in crypto prices, especially BTC. According to the miner’s filing with the United States Bankruptcy Court in Texas Southern District, its liabilities and assets are between $1 and $10 billion.
Notably, Core Scientific’s struggle is not different from that of other miners in the crypto space. In 2022, most crypto miners have seen their profit margins shrink as mining conditions worsen.
According to on-chain data analysis, the revenue of crypto miners dropped by 20% in November. Hence, the market would have to be bullish for most crypto miners to recoup from their losses.
Furthermore, Core Scientific noted that its creditors are about 1000 to 5000. The crypto miner’s largest creditor is B. Riley, a financial services firm. Core Scientific owes the company about $42.4 million.
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