LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces an investigation of Argo Blockchain plc (“Argo” or the “Company”) (NASDAQ: ARBK) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On or about September 23, 2021, Argo conducted its initial public offering (“IPO”), selling 7.5 million American Depository Shares (“ADSs”) at $15 per ADS.
On June 7, 2022, Argo issued a press release disclosing that it had mined approximated 25% fewer Bitcoin (“BTC”) in May 2022 compared to April 2022 due to increased network difficulty, higher electricity prices, and the curtailment of mining operations at its Helios facility.
On this news, Argo’s stock price fell $0.28, or 4.4%, to close at $6.09 per ADS on June 7, 2022, thereby injuring investors.
Then, on October 7, 2022, Argo announced “several strategic actions that [intend] to bring in additional capital to the business and ensure that the Company has the working capital necessary to execute its current strategy and meet its obligations over the next twelve months.” In addition to measures being undertaken to reduce costs and preserve capital, the Company had signed a letter of intent with an affiliate of New York Digital Investment Group to amend an existing financing agreement, planned to sell 3,400 mining machines, and intended to raise money via a proposed subscription with a strategic investor.
On this news, Argo’s stock price fell $0.97, of 23.3%, to close at $3.20 per ADS on October 7, 2022, thereby injuring investors further.
Then, on October 11, 2022, Argo issued a press release stating that “[d]uring the month of September, Argo mined 215 [BTC]compared to 235 BTC in August 2022” which was “primarily due to a 12% increase in average network difficulty during September.” Additionally, Argo disclosed that it was “continuing to curtail operations at its Helios facility […] during periods of high electricity prices” and was replacing the Company’s Chief Technology Officer.
On this news, Argo’s stock price fell $0.27, or 11%, to close at $2.19 per ADS on October 11, 2022 – 85.4% below the Company’s IPO price.
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If you purchased Argo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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