Investors are suing Argo Blockchain, a London-based bitcoin mining firm, for allegedly misleading them during their 2021 IPO.
Investors are suing Argo Blockchain’s CEO and other executives/board members in a New York court. The investors have accused the Bitcoin mining firm of making false statements.
Investors claim Argo hid crucial information about its finances, expenses, and technical issues during its IPO. The filing states that these undisclosed issues negatively affected the company’s ability to mine bitcoin, fulfill obligations, and execute its plan.
Reaction From Bitcoin Mining Industry
Furthermore, investors say Argo’s IPO documents were false/misleading, and the company overstated its stability and performance.
The statement stated:
The Offering Documents represented that Argo’s mining strategy purportedly involves ‘cost-effectively acquir[ing] the latest generation mining machines and install[ing] them in North American facilities that utilize predominantly…inexpensive power.
Recently Argo narrowly avoided bankruptcy by striking a deal involving a $35 million loan and purchasing Helios for $65 million with Galaxy Digital. However, now investors are filing a class action lawsuit.
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Moreover, over the previous day, the share price of the bitcoin miner decreased by 7%. As per information from the London Stock Exchange’s website, the stock’s current trading price is $15.25.
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