Argo Blockchain, a cryptocurrency mining company, publicly announced its intention to file for bankruptcy earlier than expected on December 12 due to administrative errors.
Will Foxley, Content Director at Compass Mining, was the first to share a screenshot of the Argo Blockchain special announcement on December 9th.
The document, titled “Special Stakeholder Information,” includes a special announcement from Argo, revealing that cryptocurrency mining companies will voluntarily file for Chapter 11 protection under US bankruptcy law in just two days.
Foxley went on to say he was tired of seeing so many smart teams knocked out by the harsh mining economy, but at the same time wished everyone the best of luck getting through the storm.
What is going on with Argo Blockchain?
On Friday, December 9, trading in London-based Argo Blockchain (ARBK) shares was suspended in the UK and US. The exact reasons for the suspension have not been announced, although in many cases this is a significant announcement.
According to a company statement to the London Stock Exchange at the time, if Argo failed to raise additional funding, the company would quickly experience negative cash flow and be forced to reduce its operations or cease operations altogether.
Argo announced in late October that a strategic investor bid to raise $27 million had failed, causing the company’s share price to drop more than 70 percent.
Some of Argo’s bitcoin assets were used to cover bitcoin-backed debt obligations to Galaxy Digital in August. This was before a failed funding attempt in October.
The London-based blockchain technology company mined 198 bitcoins or bitcoin equivalent in November, compared to 204 bitcoins or bitcoin equivalent mined in October.
This is mainly due to the fact that the Bitcoin network is becoming increasingly difficult to use. The overall business hashrate remains unchanged at 2.5 exahashes per second. Mining profit for November was 29% compared to 32% in October.
Argo and many other publicly traded bitcoin miners have struggled lately due to a combination of falling cryptocurrency prices and rising electricity costs.
Bitcoin miners are struggling financially, dampening the glitz of the Texas digital gold rush. As a result, bitcoin miners are leaving behind what some fear will be a vacant lot of unfinished sites and abandoned equipment.
To achieve its goal of becoming a cryptocurrency miners’ paradise, the state of Texas has aggressively courted miners by offering cheap energy and lucrative regulations. As a result, many miners borrowed billions of dollars to buy expensive machines and build infrastructure.
On December 6, Bitcoin mining difficulty was reduced by 7.32%, the biggest drop since July 2021. The company said in its November operations report released on December 9 that it is still seeking working capital to support its ongoing operations. provided at a later date to meet demand.
Disclaimer: The information provided is not trading advice. governmentjoblive.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.