Trading in the shares of London-based Argo Blockchain (ARBK) was halted on Friday in the United Kingdom and the United States. The exact reason for the suspension of trading is not clear, but often it means news is coming.
Deal falls into the water
At the end of October, Argo Blockchain was still diligently looking for capital to keep things afloat. Unfortunately, it had to report during that period that a deal worth $ 27 million had fallen through. In response, the shares already thundered down by more than 70 percent. “If Argo fails to secure further financing, it will quickly become cash flow negative and will have to cease operations,” the company said in a statement to the London Stock Exchange in October.
We are now less than two months further and the party seems to be over for Argo Blockchain. In the last update from the end of November, says Argo that it is in continuous discussion about financing to “provide the company with sufficient working capital”. This mainly concerns short-term financing. Funding that, it now seems, has come too late or not at all for Argo Blockchain.
Problems started in October
The problems for Argo Blockchain came to light in early October. At the time, the company suddenly had to selling mining hardware to meet its obligations and to continue to follow the strategy. If a Bitcoin miner has to sell his own miners, then you know something is wrong. Of course, these parties only do that if there is really no other way than, because that is the only source of income.
In November, Argo Blockchain managed to collect 198 Bitcoin, while in October there were still 204. Turnover was also much lower at $3.46 million than October’s $4.0 million.