bankruptcy sign with a man signing papers in the background

Argo Blockchain can’t guarantee it will avoid bankruptcy despite London relisting

Argo Blockchain PLC (NASDAQ: ARBK) is close to restructuring and selling some of its assets to improve its liquidity and avoid filing for Chapter 11 bankruptcy. The company has revealed that its shares got relisted on the London Stock Exchange.

The BTC block reward mining company has had a rough year, as have many miners, as the price of BTC has tumbled, losing 75% in the past year. Its woes worsened on Friday after it inadvertently published a statement on its website that indicated it was seeking to file for voluntary Chapter 11 bankruptcy in the United States.

The statement led to the company’s shares being delisted from the London bourse and Nasdaq. However, they were relisted on December 13 following the company’s filing with the LSE in which it broke down its financial situation and how it plans to improve its liquidity.

In the filing, Argo acknowledged that it’s “at risk of having insufficient cash to support ongoing business operations within the next month.” In order to remedy its financial woes, the company is negotiating with a third party to sell its assets. Despite the anticipated sale, Argo clarified that it couldn’t rule out a bankruptcy filing.

“The Company is hopeful that it will be able to consummate the transaction outside of a voluntary Chapter 11 bankruptcy filing in the United States, although there is no assurance that the Company can avoid such a filing,” the filing stated.

Upon relisting, Argo’s shares tumbled by 45% on Tuesday morning. The company’s shares have lost 95% of their value this year.

In addition to the continued decline of the BTC price, Argo has been hit by a drop in the BTC mined in recent months and the rise in energy prices. According to a statement last week, the company managed to mine just 198 BTC, a slight dip from the 204 it mined in October.

Earlier this year, the company set out to build an 800-megawatt mining facility in West Texas, which would have made it one of the world’s largest BTC miners. However, it didn’t pan out according to plan, with high energy costs and low BTC prices translating to losses from the mega investment.

Watch: The BSV Global Blockchain Convention panel, Blockchain mining & energy innovation

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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