Argo Blockchain shares halved on Tuesday morning after the bitcoin miner’s shares recommenced trading on the London Stock Exchange after being suspended.
Investors took the opportunity to dump Argo shares as the crypto company said they expected to run out of money in the coming month.
The company had been selling assets in recent months to help raise cash, but are now at a crunch point that could see them enter Chapter 11 bankruptcy.
Argo’s demise
The febrile state of the company was demonstrated by the premature publishing of a notice on the Argo Blockchain website that they had entered bankruptcy proceedings. This led to the stock being suspended by the London Stock Exchange.
Today, the company confirmed this notice was a mistake and shares were restored for trading.
Going to the extent of instructing their IT department to prepare a notice to inform website visitors they are in bankruptcy would suggest bankruptcy is a real possibility.
The company says it is hopeful it avoids bankruptcy by securing an asset sale. This may prove difficult to do.
Investors have chosen not to hang around and find out whether Argo enters bankruptcy and fled the stock. Argo Blockchain shares were down 48% at the time of writing.
Argo Blockchain share are down 96% in 2022 and trade at just fractions of their all time high.
