Argo Blockchain’s bankruptcy screenshot leaked

by Arthur · December 10, 2022

Argo Blockchain, a provider of cryptocurrency mining and smart contract services, will declare bankruptcy. On December 9, Will Foxley, the director of content at Compass Mining, tweeted a screenshot of Argo Blockchain’s “special information for stakeholders” regarding the bankruptcy, scheduled for December 12.

As the crypto industry heads into a deeper crypto winter, not only are cryptocurrencies feeling the effects, but even crypto-related companies are being drained of liquidity.

2022 was a tough year for cryptocurrencies. Bitcoin had fallen by 65% since the beginning of this year, and many other coins followed close behind to suffer complete collapse, including Luna, which lost all its value.

In addition, a number of well-known companies went bankrupt early in the year, and when November came, two more major cryptocurrency exchanges went bankrupt – FTX and BlockFi.

However, looking at Argo Blockchain stock year-to-date, there is a significant change of about 94.34% from January 2022 to December 9, according to Tradingview data.

ARBK 2022 12 10 01 29 38 — Source: Tradingview

UK suspends Argo Blockchain shares

Another news comes to light on the same day that after the beleaguered Bitcoin miner revealed a drop in revenue for November, Britain’s Financial Conduct Authority suspended shares in Argo Blockchain Plc, as reported by Bloomberg. However, this suspension is temporary.

According to the report, a similar decline has been seen in US custody income. After a $27 million share sale appeared to fall through in October, the mining company was told by authorities that it could be forced to shut down.

Argo mined 204 Bitcoin or Bitcoin equivalents in October as opposed to 215 BTC in September 2022. The significant increase in “Bitcoin network difficulty” in October was the main reason for the decrease in BTC mined.

Argo mined 198 BTC in November, compared to 204 BTC in October 2022. They all give the same reason for the decline. According to the press release:

Argo generated this income with a Bitcoin and Bitcoin equivalent mining margin of 29% for the month of November (October 2022: 32%).

However, the Bloomberg report said the company is still in discussions about financing to provide the company with enough working capital for its current needs.

Still, as the crypto bear market continues, there has been an increased level of financial hardship among Bitcoin miners. Even big mining companies like Argo are feeling the pressure. As recently as October, they announced that they had to cease operations due to a lack of funds.

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