- Argo Blockchain accidentally revealed a petition for bankruptcy on December 12.
- Compass Mining’s Will Foxley’s shared the news on Twitter.
- UK and US suspend shares for Argo due to declining revenue.
The cryptocurrency mining firm, Argo Blockchain, accidentally announced bankruptcy plans. Content Director for Compass Mining, will Foxley, shared in a tweet on December 10, a screenshot of the accidentally posted petition for bankruptcy.
Titled “Special Information for Stakeholders,” the document included an Argo Special Announcement which disclosed that the crypto mining company will voluntarily file for a petition for Chapter 11 bankruptcy protection on December 12.
Foxley further added that he is sad to see so many talented teams get washed out by brutal mining economics, while he wished luck to “all bearing the storm.”
Moreover, Foxley’s tweet was a follow-up reply to another tweet where he shared a Bloomberg article titled, “Bitcoin Miner Argo’s Shares Suspended in the UK as Revenue Declines.”
The editorial explained that the UK’s Financial Conduct Authority halted trading in the stock of Argo Blockchain after the Bitcoin miner declared a plunge in revenue for the month of November.
In addition to the United Kingdom, the US also suspended trading in shares for the London-based company, on December 9.
In a month-to-month comparison, Argo mined 198 Bitcoin in November versus 204 in October. Moreover, at the end of October, the company also announced the failure of a deal to raise $27 million from a strategic investor, which pushed the company shares down by over 70%.
In a statement shared with the London Stock Exchange, Argo Blockchain stated,
Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations.
In the November operational update that rolled out on December 9, the company mentioned continuing to pursue “working capital sufficient for its present requirements,” while adding that a “further announcement” will come in due time.
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