Argo Blockchain, a Bitcoin mining and technology company, has been making desperate attempts to parry the effects of high energy costs and falling BTC prices – both kryptonites to its business.
In fact, during the early days of December, the company admitted it is crossing its fingers to avoid filing for Chapter 11 Bankruptcy by engaging in what it termed as advanced negotiations.
On the other end of the negotiating table is an unnamed party Argo Blockchain hopes will support its business as it is dealing with insufficient funding to continue its operations.
At that time, among those being considered by the company to make ends meet were selling some of its assets and securing equipment financing to buff its thinning balance sheet and improve its liquidity.
What’s Going On At Argo Blockchain?
Ahead of an important announcement it is set to make on Wednesday, the Bitcoin mining firm has requested that trading of its shares as well as unsecured notes on NASDAQ stock exchange be put on hold until said day.
Although details about the upcoming public information sharing are limited, it is expected that Argo Blockchain’s statement will most likely include first-hand information about its current financial performance and business strategy.
Additionally, the announcement might touch the agenda of future operation plans and objective management.
Meanwhile, as to the matter of its request, at the time of writing, only its stocks trading has been suspended on NASDAQ. Argo Blockchain stocks trade both on the NASDAQ and the London Stock Exchange (LES).
To say that the company has been severely affected by the bearish momentum of Bitcoin is an understatement as its stocks, over the course of the year, have already lost 95% of their value.
Crypto total market cap at $759 billion on the daily chart | Chart: TradingView.com
Crypto Miners At The Losing End Of 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 attained its current all-time high (ATH).
With this, companies like Argo Blockchain are expected to take a heavy hit as their income depends heavily on the price of BTC.
Greenidge Generation, another mining company, is riding the same boat as Argo’s as it disclosed earlier this month that there is substantial doubt about its capacity to continue doing business.
Core Scientific, considered one of the largest players in the industry, has already filed for a Chapter 11 Bankruptcy protection as high overhead costs and declining Bitcoin prices dealt a heavy blow on its operations.