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Is the mining giant facing bankruptcy?

At 2.5 EH/s, Argo Blockchain is one of the leading Bitcoin miners.

By Finst News
• 3 min read
Is the mining giant facing bankruptcy?

With 2.5 EH/s, Argo Blockchain is one of the leading Bitcoin miners. But the company needs cash badly, or a bankruptcy could be looming.

Is Argo Blockchain bankrupt? A document from yesterday, Monday, December 12, shows that the London-based mining firm’s finances are, at best, unstable. In the company’s letter to the London Stock Exchange it states: "There is a risk that the company will not have enough liquidity to continue its ongoing operating activities in the coming month." The company said it is currently selling some of its assets to "strengthen its balance sheet."

Whether this signals a liquidation of Bitcoin (BTC) or ASIC miners isn’t clear. The plan is to avoid a voluntary bankruptcy filing under Chapter 11 of the US Bankruptcy Code.

Error halts trading in mining stocks

Argo isn’t bankrupt yet, according to management. A document that was incorrectly posted on its own website declaring the company bankrupt was just for testing. Still, the London Stock Exchange has halted trading in the stock pending further notice; a re-listing is expected soon.

Whether Argo can pull its head out of the noose is in question. In early November there was a capital raise of 27 million USD that fell through. It’s likely an investor pulled out close to the debt offering’s registration. Back then, the miners liquidated assets and dumped a total of 3,843 Bitmain S19J Pro ASICs on the market for 5.6 million USD.

Meanwhile, Argo Blockchain isn’t the only publicly traded mining company under intense financial pressure. A toxic mix of high hashrate, weak Bitcoin prices, and rising energy costs is causing trouble for the entire industry.

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