Argo Blockchain PLC

Argo Blockchain’s shares rise by this number as it regains Nasdaq listing

Published

7 days ago

January 24, 2023

Argo Blockchain’s shares rise by this number as it regains Nasdaq listing

The shares of U.K.-based Bitcoin mining company Argo Blockchain rose as the company gained listing compliance with Nasdaq.
Since its 0.38 low on December 16, the miner’s stock has rose by 400% to $2.03.

The shares of Bitcoin [BTC] mining company Argo Blockchain rose as much as 18% on 23 January after the company regained listing compliance with Nasdaq. The development came on the heels of a December 2022 agreement with Galaxy Digital to avoid bankruptcy, which was accompanied by a rise in BTC.

On 13 January, the United Kingdom-based company announced that it had met the requirement to continue listing its shares on Nasdaq after bids for its shares remained above $1 for 10 consecutive days.

What went wrong with Argo Blockchain?

In December, Nasdaq notified Argo that its shares did not comply with exchange rules because closing bid prices for its stock were below $1 for 30 consecutive days. Nasdaq gave Argo a deadline of 12 June to reclaim its listing privileges, else it risked being delisted from the exchange.

The miner’s shares had become a penny stock in the latter half of last year, with its share price dropping as low as $0.38 on 16 December following the crypto winter. Argo, among other crypto companies, was on the verge of declaring bankruptcy because of rising energy costs and a sharp drop in BTC prices.

The mining enterprise avoided bankruptcy last month when it agreed to sell its Helios mining facility in Texas to the crypto-based financial services firm Galaxy Digital for $65 million and a $35 million loan.

The transaction assisted Argo in bolstering its balance sheet and avoiding bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October last year.

Evidently, Argo Blockchain could benefit from the lower debt load after its previously disclosed equity raise with a strategic partner fell through. The firm could have more money to buy additional miners and increase hash rate faster with less capital expense dedicated to mining facility development.

Since its low ($0.38) on 16 December last year, the miner’s stock has rose by over 400% to $2.03.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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Argo Blockchain PLC

Bitcoin [BTC] miner to face class action lawsuit… Details inside

Published

3 days ago

January 28, 2023

Suzuki Shillsalot

Bitcoin [BTC] miner to face class action lawsuit… Details inside

Argo Blockchain is facing a class action lawsuit filed by its investors.
The lawsuit accuses the firm of misleading investors and misrepresenting facts.

Bitcoin [BTC] miner Argo Blockchain will be the subject of a class action lawsuit filed by its investors. The London-based mining firm has been accused of misleading its investors during its initial public offering (IPO) in 2021.

Argo’s CEO, other executives named in the lawsuit

According to a recent filing in the United States District Court for the Eastern District of New York, Argo Blockchain’s CEO along with other executives and board members have been named in the lawsuit. The investors have accused the Bitcoin miner of making misleading statements.

Furthermore, the investors have claimed that Argo failed to disclose several important facts pertaining to its operations during the IPO. This includes capital constraints, electricity and other expenses, and network difficulties.

According to the filing, these factors hampered the company’s ability to carry out Bitcoin mining operations, meet its obligations, and execute its business strategy.

Bitcoin miners’ response

Argo Blockchain’s investors have argued that these issues made the company’s offering documents false and/or misleading. According to them, the company overstated its business and financial prospects and the business was less sustainable than they were led to believe.

The filing read:

“The Offering Documents represented that Argo’s mining strategy purportedly involves ‘cost-effectively acquir[ing] the latest generation mining machines and install[ing] them in North American facilities that utilize predominantly…inexpensive power.”

News of the lawsuit comes barely a month after Argo struck a deal with Mike Novogratz’s Galaxy Digital, which involved a $35 million loan and the acquisition of Helios for $65 million. This deal helped the company avoid bankruptcy.

The Bitcoin miner’s share price fell by 7% over the past 24 hours. Data from the London Stock Exchange’s website shows that the stock is currently trading at $15.25.