Argo Blockchain is at risk of closure
An imminent closure is looming for Argo blockchain as multi-million funding has been called off. It is a Bitcoin mining services firm which is listed on NASDAQ as well as London Stock Exchange.
On 31 October 2022, the firm released an official statement in which it revealed to its stakeholders that fundraising of £24 million, which is approximately $27 million, has been cancelled. It stated that “the Company no longer believes this subscription will be consummated.”
No assurance of a definitive deal from Argo Blockchain
It has shared that it will explore other options to secure financing. However, it does not give any assurance for definitive deals. Nonetheless, it will strive to raise enough for the following year.
It also revealed that if it failed to secure sufficient funds, it may “become negative cash flow.” If that happens, then the firm might have to curtail its operations or move towards complete closure.
What steps has Argo blockchain taken to optimise liquidity?
Argo blockchain is taking several steps to preserve cash and increase liquidity. It has sold around 3,843 new Bitmain S19J Pro machines for around £4.8 million ($5.6 million). It was the last batch from the original Bitmain order and was planned to be installed in October 2022. Currently, the company is maintaining a hash rate capacity of 2.5 EH per second.
Earlier, the miner firm sold out mined BTCs to pay off its debt to the crypto investment company Galaxy Digital. The company is owned by a well-known American investor Michael Novogratz.
In June, the firm traded around 637 Bitcoins; in July, the total number of Bitcoins sold was 887. With this move, it became one of the Bitcoin mining firms to sell mined BTCs during the extremely bear market. Other firms that also sold mined tokens included Bitfarms, Riot Blockchain, and Core Scientific.
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