Argo Blockchain hit with class action lawsuit over IPO misinformation

Argo Blockchain investors have filed a lawsuit alleging that the crypto miner made misleading statements and concealed important information during its initial public offering (IPO) filing.

The Texas-based Bitcoin mining firm went public on Sept. 23, 2021, after submitting the required documents to the U.S. Securities and Exchange Commission (SEC).

During its IPO, Argo issued about 7.5 million ADS shares at an offering price of $15, bringing in proceeds of approximately $105 million to the mining firm.

However, a Jan. 26 lawsuit by early Argo Blockchain investors alleged that the crypto miner made misleading information during its IPO registration.

Investors accuse Argo

The investors accused Argo Blockchain of failing to disclose that its business was highly susceptible to electricity costs and network difficulties.

For context, Argo Blockchain accidentally revealed that it was preparing to file for bankruptcy back in Dec. 2022. Further investigation revealed that its financial woes were linked to high electricity prices which went as high as $0.06 per kWh — which would cause the firm around $12.400 to mint 1 BTC.

Argo Blockchain negligently prepared its IPO documents which concealed vital information that would affect its business profitability, alleged the lawsuit.

Investors claimed that if Argo Blockchain had not concealed such important information, they would not have purchased the securities or acquired them at the inflated prices that were paid.

Available data shows that Argo Blockchain’s share price is below $0.2 — indicating a 98% decline from the offering price of $15.

In the wake of the prolonged bear market, Argo Blockchain reportedly sold its Helios facility to Galaxy Digital. As a result, its mining revenue fell to $2.49 million, while its debt amounted to $79 million at the end of Dec. 2022.

Posted In: , Legal, Mining
Bookmark (0)
ClosePlease loginn

Related Posts

Trump NFT sales volume soars 461% following indictment

Trump NFT sales volume soars 461% following indictment

Trump has lashed out at the news of his indictment, calling it a “political persecution.”

Bookmark (0)
ClosePlease loginn
XRP Perpetual Futures Open Interest skyrockets to $610 million

XRP Perpetual Futures Open Interest skyrockets to $610 million

The XRP derivative market indicates strong positive sentiment, some expect the SEC lawsuit to conclude soon.

Bookmark (0)
ClosePlease loginn

Binance Fan Token Platform Launches Alpine Race Collectibles for Unique F1 Experiences

Bookmark (0)
ClosePlease loginn
CNBC’s Jim Cramer calls Binance “way too sketchy”

CNBC’s Jim Cramer calls Binance “way too sketchy”

Crypto community reacts to Jim Cramer’s comments on Binance with humor and irony amid mounting regulatory pressures.

Bookmark (0)
ClosePlease loginn
CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

Bookmark (0)
ClosePlease loginn
KCC upgrade to enhance performance goes live on testnet

KCC upgrade to enhance performance goes live on testnet

The fan-built KCC V.1.3.0 upgrade focuses on merging upstream code, enhancing performance, and resolving bugs.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *