Sign up for our newsletters

What happened today in crypto markets – and why. Best Litecoin Miner

Be a smarter, safer investor in eight weeks.

The biggest crypto news and ideas of the day.

The latest moves in crypto markets, in context.

The transformation of value in the digital age.

News and analysis for the professional investor.

Probing the intersection of crypto and government.

How Ethereum's evolution impacts crypto markets.

What financial advisors need to know about crypto.

By signing up, you will receive emails about CoinDesk products and you agree to ourterms & conditions andprivacy policy .

Jamie Crawley is a CoinDesk news reporter based in London.

Argo Blockchain, a crypto miner whose shares trade on the London Stock Exchange (ARB) and Nasdaq (ARBK), is facing a class-action lawsuit over alleged misleading statements made during the initial public offering (IPO) of its American depositary shares (ADS) in 2021.

The London-based company made untrue or incomplete statements, failing "to state other facts necessary to make the statements made not misleading," according to a filing dated Jan. 26 in the U.S. District Court for the Eastern District of New York.

Argo is accused of failing to disclose that it suffered from significant capital constraints, as well as electricity and network difficulties. These constraints hampered the firm's ability to mine bitcoin and operate its Helios facility in Texas. Although the complaint was filed as class action, it doesn't actually become one until a judge assigns it that status.

"Argo’s business was less sustainable than Defendants had led investors to believe; accordingly, Argo’s business and financial prospects were overstated," according to the filing. The mining firm offered 7.5 million ADS, each representing 10 shares of common stock, on the Nasdaq Global Market in September, 2021. However, 2022 was not kind to Argo, nor to its peers in the bitcoin mining industry. Firms were squeezed between falling crypto valuations and rising electricity costs. The pressures culminated in bankruptcy for one of the industry's biggest miners, Core Scientific.

Argo narrowly avoided the same fate by selling the Helios facility to Mike Novogratz’s crypto-focused financial-services firm Galaxy Digital for $65 million and a $35 million loan.

The sale helped lift Argo's shares, which slumped more than 90% last year. The London-based stock has more than doubled in January, and the U.S. shares, which were at risk of being suspended, have also recovered.

Argo's LSE-listed shares are down over 3% at 15.94 pence as of midday in London. At the time of writing, ARBK shares on Nasdaq are down about 4% at $1.95 in pre-market trading.

Argo had not responded to CoinDesk's request for comment at press time.

Read more: Bitcoin Miner CleanSpark Builds 50MW Additional Mining Capacity at Georgia Site

UPDATE (Jan. 27, 15:20 UTC): Adds that the suit needs to be certified by a judge before it becomes an official class action.

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley is a CoinDesk news reporter based in London.

Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

Jamie Crawley is a CoinDesk news reporter based in London.

Goldshell Mini Doge Pro Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated. The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.