Trading in London-based Argo Blockchain (ARBK) shares was halted on Friday in the United Kingdom and the United States. The exact reason for the trading suspension is not clear, but it often means that news is coming.
The deal falls into the water
At the end of October, Argo Blockchain was still seriously looking for capital to keep things afloat. Unfortunately, during that time she had to report that a deal worth $27 million fell through. In response, shares have already fallen more than 70 percent. “If Argo fails to secure further financing, its cash flow will quickly turn negative and it 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 away and it looks like the party is over for Argo Blockchain. In its latest update at the end of November, Argo says it is in ongoing discussion about financing to “provide the company with sufficient working capital.” This mainly concerns short-term financing. Now it appears that funding is too late or not at all for Argo Blockchain.
The problems started in October
Argo Blockchain problems came to light in early October. At that time, the company suddenly had to sell mining hardware in order to fulfill its commitments and continue with the strategy. If a bitcoin miner has had to sell their miners, you know something is wrong. Of course, these parties only do this if there really is no other way, because that is their only source of income.
In November, Argo Blockchain managed to collect 198 bitcoins, while in October there were still 204. The turnover was also much lower at $3.46 million than $4.0 million in October.
