SMALL CAP MOVERS: Argo Blockchain falls further
Bitcoin miner had a wild week. Shares were suspended last Friday when the company inadvertently published a test page on the its website that implied it was filing for bankruptcy. While a spokesperson assured shareholders that Argo 'has not filed for bankruptcy at this time', the statement did concede that it might have insufficient cash to support its ongoing business operations within the next month, although it is in advanced negotiations with a third party to shore up its balance sheet. Argo Blockchain shares have fallen today, adding to last Friday's losses when the bitcoin miner inadvertently published a test page on its website that implied it was filing for bankruptcy Come Friday morning, ARB shares were down nearly 50 per cent since the suspension. That may sound bad on paper, but it speaks more to dire market conditions than Argo's specific business operations. The crypto mining sector has been absolutely pummelled in 2022, with tumbling bitcoin prices and soaring energy costs shaking up a deadly macro cocktail. Bitcoin mining might appear to be an esoteric sector, but its revenue model is simple: generate revenue through minting new bitcoins by expending a ton of energy to power the massive banks of computers that perform the mining functions. So it should come as no surprise when the sector takes a hit on soaring energy costs and plummeting bitcoin prices. RELATED ARTICLES Previous 1 Next CITY WHISPERS: Bitcoin miner falls back in love with real... BUSINESS CLOSE: Retail sales fall 0.4% as business activity... Businesses cut jobs for first time since early 2021... Jobs at risk at BT Group as telecoms giant merges two... Share this article Share Is there a way for Argo and its competitors to claw their way out? Sure! But it all depends on whether peak energy inflation is behind us, and whether the bottom has finally been reached on the bitcoin market. Argo, though was not the biggest faller of the week, that badge fell to , which saw its shares plunge 81 per cent on a heavily discounted fundraising plans that would see the AIM-listed group raise an initial £5.15million. In a statement, Philip Johnston, Trackwise chief executive said it was 'a matter of deep regret that we have found ourselves forced to come to the market on these terms'. Advertising platform Revenues for the year are expected to fall between £1.52million and £1.75million, Mirriad said, slightly short of market expectations, pending a number of late deals which may be won and delivered before the year end. AIM's top 100 shares also had down week, shedding around 1.1 per cent to 3,926 though this was slightly better than Footsie, which gave up 1.2 per cent. Some companies did see some pre-Christmas cheer. In the mining segment, surged 35 per cent, catalysed by news that the Africa-focused exploration company had delivered a first-ever JORC mineral resource estimate for its gold prospect at Bibemi in Cameroon. JORC is the Australian mining industry standard for reporting exploration results. In a statement, chief executive Tim Livesey said 'We are very pleased to have delivered an initial JORC mining resource estimate of significant size in a cost-effective manner and within such a short timeframe, despite the impacts of the covid pandemic. 'This was the first drilling ever carried out at Bibemi and it clearly demonstrates the massive opportunity that exists in this underexplored region.' Oriole's rally brought its market value up to £4.4million. Also on the up was construction safety firm , which soared 30 per cent after forecasting full-year pre-tax profits would be significantly ahead of previous expectations. The company said trading has continued to improve since it reported half-year results in September when it highlighted a strong order book at improving margin levels and a significant pipeline of opportunities. meanwhile jumped 17 per cent after announcing the sale of a 1.5 MWh flow battery system to Hyosung Heavy Industries. The AIM-listed global manufacturer of utility-grade batteries said the sale was an important next step in the formation of its global partnership with Hyosung, first details of which were announced in April. DIY INVESTING PLATFORMS Stocks & shares Isa Stocks & shares Isa Easy investing Capital at risk. Isa rules & T&Cs apply. Investment ideas Free fund dealing Free fund dealing 0.45% account fee capped for shares Flat-fee investing No fees £9.99 monthly fee One free £5.99 trade per month Social investing Commission-free Share investing 30+ million global community Model portfolios Investment account Free fund dealing Free financial coaching Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence. > Compare the best investing platform for you
