Argo Blockchain mining firm has faced some financial challenges because of surging energy costs and the plunging price of Bitcoin. In that context, the firm has suspended trading of all its American depositary shares (ADS) on NASDAQ, based on a December 27 press release.
At our request, @Nasdaq temporarily suspended trading of Argo’s ADSs and unsecured notes for today – Tues Dec 27.
We’ll be making an announcement tomorrow (Dec 28) via RNS before the @LSEplc opens in the UK…we expect trading on Nasdaq to resume tomorrow.#ARB $ARBK #BTC
— Argo (@ArgoBlockchain) December 27, 2022
The firm said that it had to suspend trading due to an announcement that is scheduled to come on December 28 and because the London Stock Exchange (LSE) was closed on Tuesday. Argo Blockchain said that it expects shares to resume NASDAQ trading on December 28.
This statement comes after the firm has been affected by multiple financial problems and faced bankruptcy rumors because of surging costs of energy and dropping Bitcoin prices.
On December 9, Argo Blockchain inadvertently shared a document with one reporter that falsely declared it to have filed for bankruptcy. While responding to this matter, the London Stock Exchange and NASDAQ suspended trading of its shares. The team then responded by requesting that its shares resume trading, since it had not really filed for bankruptcy.
Buy Bitcoin NowAt that time, the firm admitted that it was “at risk of having insufficient cash to support ongoing business operations within the next month.” But, it said that it was still trying to avoid Chapter 11 bankruptcy.
On December 16, the company said that it was facing more negative attention from NASDAQ. Its shares had traded below $1 for 30 straight days. If the company failed to get its share price to close above $1 within the next 180 days, it would get delisted from NASDAQ.
New RNS: we received notice from @Nasdaq as our ADSs have closed below $1 for 30 trading days
We have 180 days to cure this deficiency
No impact to our operations or LSE listing, and no impact to our ongoing negotiations
Full RNS: https://t.co/Au3txnlkHL
#ARB $ARBK #BTC— Argo (@ArgoBlockchain) December 16, 2022
The new suspension of trading on December 27, 2022, was not initiated by the stock exchange. Instead, Argo Blockchain voluntarily requested that the trading of its shares be suspended. An announcement is expected from the team on December 28, before the 8 a.m. UTC opening of the London Stock Exchange.
