Bitcoin mining Argo blockchain suspended trades its American Depositary Shares (ADS) on Nasdaq, according to a December 27 press release. The company said it needed to suspend trading due to the announcement to be made on 28 December and due to the London Stock Exchange closing on 27 December. Argo said it expects shares to resume trading on the Nasdaq on Dec. 28.
At our request, @nasdaq temporarily suspended trading in ADS and unsecured Argo notes for today – Tuesday, December 27th.
— Argo (@ArgoBlockchain) December 27, 2022
The announcement came after the company ran into financial trouble and faced bankruptcy rumors due to rising energy prices and falling Bitcoin (BTC) prices.
On December 9, Argo inadvertently shared a document with a reporter that falsely declared bankruptcy. In response, the London Stock Exchange and Nasdaq suspended trading in its shares. In response, the team demanded that trading in its shares be resumed, as it had not actually filed for bankruptcy.
At the time, the company acknowledged that it was “at risk of not having enough cash to support current business operations over the next month.” However, he has stated that he is still trying to avoid Chapter 11 bankruptcy.
On December 16, the firm announced that before further negative attention from Nasdaq as its shares traded below $1 for 30 straight days. If the company’s share price does not exceed $1 in the next 180 days, it will be delisted from the Nasdaq.
New RNS: We received a notification from @nasdaq because our ADSs have closed below $1 for 30 trading days.
We have 180 days to cure this deficiency.
Does not affect our operations or LSE listing, nor does it affect our ongoing negotiations.
— Argo (@ArgoBlockchain) December 16, 2022
This new suspension of trading on December 27 was not initiated by the stock exchange. Instead, Argo voluntarily demanded a suspension of trading in its shares. An announcement is expected from the team on December 28, before the London Stock Exchange opens at 8:00 am UTC.