Bitcoin Miner Argo’s Shares Suspended in UK as Revenue Declines
Shares of Argo Blockchain Plc were temporarily suspended by the UK's Financial Conduct Authority after the beleaguered Bitcoin miner disclosed a November decline in revenue.
The London-based company's stock has already tumbled more than 90% this year. The American depository receipts are down a similar amount.
In October, the mining firm was warned that it could be forced to shut down after a $27 million share sale appeared to have collapsed. In November, Argo said in a statement Friday that it had mined 198 Bitcoin, compared to 204 in October.
Argo Blockchain said it continues to engage in financing discussions to provide the firm with working capital sufficient for its present requirements.
As the crypto bear market continues, the firms that mine Bitcoin are coming under financial strain. Argo is among the largest public Bitcoin miners. It planned to build out a mining farm with up to 800-megawatt capacity earlier this year. However, the firm said in October it would have to curtail or cease operations without securing further funding.
Bitcoin miners raised billions of dollars from debt financing during the most recent bull run but they are struggling to repay interest payments. Low Bitcoin prices, soaring energy costs and stiff competition have battered the mining industry. Crypto-mining giant Core Scientific warned of a potential bankruptcy, while Iris Energy defaulted on $108 million in mining equipment-secured loans.
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