Bitcoin miner forced to deny bankruptcy after web post

A LONDON-LISTED Bitcoin mining company has been forced to deny it has gone bankrupt after accidentally publishing a page on its own website stating it had collapsed.

Argo Blockchain, which is jointly listed on London’s junior market, Aim, and in the US, said yesterday it was in “advanced” talks to secure additional funding and was in the process of selling “certain assets” to stay afloat.

The company’s shares were suspended on Friday after it accidentally published a draft page on its website that “implied the company was filing for Chapter 11 bankruptcy”.

Argo last night said: “Shareholders should note that the company has not filed for bankruptcy at this time.” Its shares resumed trading yesterday.

Argo, which is led by Canadian executive Peter Wall, admitted it was at risk of having “insufficient cash” to support its business for the next month but said it was “hopeful that it will be able to consummate the transaction outside of

a voluntary Chapter 11 bankruptcy”. It added there was “no assurance” it could avoid collapse.

The company has hired legal experts Mcdermott Will & Emery and financial advisers Berkeley Research Group, Stifel and Miller Buckfire to hunt for a rescue deal.

Argo was the first cryptocurrency company to go public in the UK, floating in 2018, and later adding a US listing in 2021. It was one of a flurry of small-cap UK companies to rocket in value thanks to speculative interest in the price of Bitcoin in recent years.

At one stage Argo, which operated a Bitcoin mining facility in Texas, was valued at half a billion pounds.

The company made money by using specialised processors to “mine” Bitcoin. It performed the complex calculations that keep the Bitcoin network functioning for rewards of digital currency.

However, its valuation has slumped to just £30m and its Us-listed bonds have collapsed. Last week, it said the number of Bitcoin it had mined had fallen, along with its revenues.

Argo has also come under scrutiny from short sellers who criticised its governance and transparency.