Shares in Argo Blockchain tumbled by as much as 25% on Tuesday as the cryptocurrency mining firm warned it would temporarily suspend trading of its shares due to unresolved accounting issues and mounting financial losses.
The London-listed company admitted it had missed the deadline to finalise its 2024 accounts, a breach of listing rules that has forced it to request a suspension in trading. The delay, Argo said, was driven by a letter from the U.S. Securities and Exchange Commission (SEC) concerning the classification of its digital assets. In response, Argo was required to restate its 2023 financial statements — a move that altered its net loss figures and cashflow reporting, and subsequently stalled its latest financial disclosures.
“The delay is due to management time and auditor resources being directed toward the restatement of the company’s annual report for the year ended 31 December 2023,” the company said in a statement.
Argo’s auditor, PKF Littlejohn LLP, has informed the firm that while the audit is nearing completion, it will not be finished before the required deadline.
Preliminary results for 2024 revealed a sharp increase in losses, with the company reporting a net loss of $54.4 million — a 57% rise compared to 2023. Revenues dipped slightly to $47 million over the same period.
The accounting setback marks the latest in a string of challenges for Argo. Earlier this year, the company was warned that its consistently low share price could lead to delisting from the Nasdaq, due to a breach of the exchange’s minimum bid requirement. Argo has until July to regain compliance or face removal from the U.S. exchange.
Further compounding its troubles, CEO Thomas Chippas announced in January that he would step down effective 28 February 2025, after just over a year in the role.
Argo, which operates crypto mining facilities in Quebec and Texas, has seen its share price fall by more than 80% over the past 12 months.
