Argo Blockchain, an enterprise-scale provider of cryptocurrency mining and smart contract services, will declare bankruptcy. On December 9th, Will Foxley, the content director at Compass Mining, tweeted a screenshot of the Argo Blockchain “special information for stakeholders” regarding its bankruptcy, scheduled for December 12th.
As the crypto industry heads towards deeper crypto winter, cryptocurrencies are not only feeling its effects, but even crypto-related companies are being drained of liquidity.
2022 was a rough year for cryptocurrencies. Bitcoin had fallen by 65% from the beginning of this very year, and many other coins followed closely in its wake to suffer complete collapses, too- like Luna, which lost all of its value.
Additionally, a number of well-known companies went bankrupt early in the year, and when November came around, two more major cryptocurrency exchanges went bankrupt-FTX and BlockFi.
However, when we look up at the Argo Blockchain shares review from the start of the year, there is a significant change of about 94.34% from January 2022 to December 9th, according to the data from Tradingview.
UK Suspends Argo Blockchain Shares
Another piece of news comes on sight on the same day that after the beleaguered Bitcoin miner revealed a fall in revenue for November, the UK’s Financial Conduct Authority suspended shares of Argo Blockchain Plc, as reported by Bloomberg. However, this suspension is temporary.
According to the report, similar decreases have been seen in American depository revenues. After a $27 million share sale looked to have fallen through in October, the mining company was told by authorities that it could be forced to close.
Argo mined 204 Bitcoin or Bitcoin Equivalents in October as opposed to 215 BTC in September 2022. The considerable rise in the “Bitcoin network difficulty” in October was the leading cause of the decline in BTC mined.
Argo mined 198 BTC in November, compared to 204 BTC in October 2022. They all cite the same cause for the decline. As per the press release:
Argo generated this income at 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 give the company with working capital enough for its current needs.
Nevertheless, as the crypto bear market continues, there has been an increased level of financial difficulty among Bitcoin miners. Even large mining companies such as Argo are feeling the pressure. As recently as October, they announced they would have to cease operations due to a lack of funds.
Related Reading | Team Shiba Inu Showcase A “Spectacular” Metaverse Hub: Details