NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Argo Blockchain plc (“Argo” or the “Company”) (NASDAQ: ARBK) securities between September 23, 2021 through October 10, 2022 (the “Class Period”). Investors have until March 27, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Argo is principally involved in crypto asset mining.
Argo conducted its IPO on September 23, 2021, selling 7.5 million shares at a price of $15.00 per share.
On June 7, 2022, Argo issued a press release providing an operational update, in which it disclosed that it had mined approximately 25% fewer BTC in May 2022 compared to April 2022 because of, inter alia, increased network difficulty, higher electricity prices, and the curtailment of mining operations at its Helios facility. On this news, the price of Argo shares declined by $0.28 per share, or approximately 4.40%, from $6.37 per share to close at $6.09 on June 7, 2022.
On October 7, 2022, Argo issued a press release “announc[ing] several strategic actions that are intended 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.” Argo stated that in addition to measures being undertaken to reduce costs and preserve capital, the Company had signed a non-binding letter of intent with an affiliate of New York Digital Investment Group to amend an existing equipment financing agreement, plans to sell 3,400 mining machines for cash proceeds of £6 million, and intends to raise approximately £24 million via a proposed subscription with a strategic investor. On this news, the price of Argo shares declined by $0.97 per share, or approximately 23.26%, from $4.17 per share to close at $3.20 on October 7, 2022.
On October 11, 2022, during pre-market hours, Argo issued a press release providing an operational update, stating, in relevant part: “During the month of September, Argo mined 215 [BTC] compared to 235 BTC in August 2022. The decrease in BTC mined is primarily due to a 12% increase in average network difficulty during September. Additionally, the Company is continuing to curtail operations at its Helios facility in Dickens County, Texas during periods of high electricity prices.” On this news, the price of Argo shares declined by $0.27 per share, or approximately 10.98%, from $2.46 per share to close at $2.19 on October 11, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Argo was highly susceptible to and/or suffered from significant capital constraints, electricity and other costs, and network difficulties; and (ii) the foregoing issues hampered, inter alia, Argo’s ability to mine BTC, execute its business strategy, meet its obligations, and operate its Helios facility.
If you purchased or otherwise acquired Argo securities, have information, or would like to learn more about this lawsuit, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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