Argo Blockchain is at risk of closing if it fails financing. To reduce debt owed, Argo Blockchain started selling its Bitcoin assets earlier this year.
Argo Blockchain, a cryptocurrency company registered on the London Stock Exchange, has issued a warning that it faces the possibility of halting operations because of a shortage of funding.
According to a report on October 31, the cryptocurrency mining startup Argo Blockchain is still looking into fresh financing options after failing to get significant funding from a strategic investor. By subscribing for ordinary shares, Argo hopes to raise roughly 24 million British pounds ($27 million).
“The company no longer believes that this subscription will be consummated under the previously announced terms,” Argo said in a statement.
Argo is looking at other financing possibilities, but there is no guarantee that it will finalize any arrangements or sign any binding contracts.
After the announcement, the company will strive for at least the next 12 months to raise enough money, according to Argo. When asked about what would happen if Argo didn’t succeed in raising money during this time, the company stated:
“Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations.”
Argo has been taking actions to protect funds and maximize liquidity despite the lack of finance. 3,843 brand-new Bitmain S19J Pro miners, the final shipment of the initial Bitmain order scheduled for installation in October 2022, were sold by the firm for $5.6 million.
The maximum hashrate that Argo could process remained at 2.5 exahashes per second. Previously, Argo aggressively sold its holdings of mined Bitcoin (BTC $20,702) to reduce its debt to Michael Novogratz’s cryptocurrency investment company Galaxy Digital. After selling 637 BTC in June 2022, Argo sold a further 887 BTC in July.
Argo, along with Bitfarms, Core Scientific, and Riot Blockchain, became one of many cryptocurrency mining companies who decided to sell independently-mined Bitcoin during the bear market of 2022 as a result.Argo is not the only cryptocurrency mining company that has found it difficult to continue operations despite the current weak market.
Bitcoin miner Core Scientific issued a bankruptcy warning in documents filed with the US Securities and Exchange Commission on October 26. The company claimed unfavorable business developments like low BTC pricing, rising electricity rates, and other problems.
