Argo Blockchain hit with class motion lawsuit over IPO misinformation

Argo Blockchain traders have filed a lawsuit alleging that the crypto miner made deceptive statements and hid necessary data throughout its preliminary public providing (IPO) submitting.

The Texas-based Bitcoin mining agency went public on Sept. 23, 2021, after submitting the required paperwork to the U.S. Securities and Trade Fee (SEC).

Throughout its IPO, Argo issued about 7.5 million ADS shares at an providing value of $15, bringing in proceeds of roughly $105 million to the mining agency.

Nevertheless, a Jan. 26 lawsuit by early Argo Blockchain traders alleged that the crypto miner made deceptive data throughout its IPO registration.

Buyers accuse Argo

The traders accused Argo Blockchain of failing to reveal that its enterprise was extremely vulnerable to electrical energy prices and community difficulties.

For context, Argo Blockchain accidentally revealed that it was making ready to file for chapter again in Dec. 2022. Additional investigation revealed that its monetary woes had been linked to excessive electrical energy costs which went as excessive as $0.06 per kWh — which might trigger the agency round $12.400 to mint 1 BTC.

Argo Blockchain negligently ready its IPO paperwork which hid very important data that may have an effect on its enterprise profitability, alleged the lawsuit.

Buyers claimed that if Argo Blockchain had not hid such necessary data, they’d not have bought the securities or acquired them on the inflated costs that had been paid.

Out there data exhibits that Argo Blockchain’s share value is under $0.2 — indicating a 98% decline from the providing value of $15.

Within the wake of the extended bear market, Argo Blockchain reportedly sold its Helios facility to Galaxy Digital. Because of this, its mining revenue fell to $2.49 million, whereas its debt amounted to $79 million on the finish of Dec. 2022.