Argo Blockchain is at risk of closing if it fails further financing
The London Stock Exchange-listed cryptocurrency firm Argo Blockchain has warned that it’s at risk of ceasing operations due to a lack of financing.
The crypto mining company Argo Blockchain continues to explore new financing opportunities after failing to raise major capital from a strategic investor, according to an announcement on Oct. 31.
Argo has been seeking to raise about 24 million British pounds ($27 million) via subscription for ordinary shares. “The company no longer believes that this subscription will be consummated under the previously announced terms,” Argo said in a statement.
While Argo is exploring other financing options, there can be no assurance that it will sign any definitive agreements or consummate any deals. The firm will continue to work to reach sufficient capital for at least next 12 months from the day of the announcement, Argo noted.
Argo will have to cut or event halt operations in case it fails to raise capital during this period, the firm noted, stating:
Amid the lack of financing, Argo has been taking measures to preserve cash and optimize liquidity. The company sold 3,843 brand new Bitmain S19J Pro miners for $5.6 million, which was the last batch of the original Bitmain order scheduled for installation in October 2022. Argo’s total hashrate capacity remained at 2.5 exahashes per second.
Related: Bitcoin miners rethink business strategies to survive long-term
Previously, Argo has also been actively selling its mined Bitcoin (BTC) holdings in order to cut debt to Michael Novogratz’s crypto investment firm Galaxy Digital. In July, Argo sold another 887 BTC after previously getting rid of 637 BTC in June 2022. In doing so, Argo became one of many crypto mining firms that opted to sell self-mined
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