Argo Blockchain has been promoting its Bitcoin holdings earlier this 12 months to chop debt to Michael Novogratz’s crypto funding agency Galaxy Digital.
The London Inventory Change-listed cryptocurrency agency Argo Blockchain has warned that it’s vulnerable to ceasing operations resulting from an absence of financing.
The crypto mining firm Argo Blockchain continues to discover new financing alternatives after failing to lift main capital from a strategic investor, in response to an announcement on Oct. 31.
Argo has been searching for to lift about 24 million British kilos ($27 million) by way of subscription for abnormal shares. “The corporate now not believes that this subscription will probably be consummated beneath the beforehand introduced phrases,” Argo stated in an announcement.
Whereas Argo is exploring different financing choices, there may be no assurance that it’ll signal any definitive agreements or consummate any offers. The agency will proceed to work to succeed in enough capital for a minimum of the subsequent 12 months from the day of the announcement, Argo famous.
Argo must reduce or occasion halt operations in case it fails to lift capital throughout this era, the agency famous, stating:
“Ought to Argo be unsuccessful in finishing any additional financing, Argo would turn into money circulation unfavorable within the close to time period and would wish to curtail or stop operations.”
Amid the shortage of financing, Argo has been taking measures to protect money and optimize liquidity. The corporate bought 3,843 brand-new Bitmain S19J Professional miners for $5.6 million, which was the final batch of the unique Bitmain order scheduled for set up in October 2022. Argo’s whole hash charge capability remained at 2.5 exahashes per second.
Beforehand, Argo has additionally been actively promoting its mined Bitcoin (BTC) holdings in order to cut debt to Michael Novogratz’s crypto funding agency Galaxy Digital. In July, Argo bought one other 887 BTC after beforehand getting rid of 637 BTC in June 2022. In doing so, Argo grew to become one in every of many crypto mining companies that opted to promote self-mined BTC amid the bear market of 2022, together with Bitfarms, Core Scientific and Riot Blockchain.
Argo shouldn’t be the one crypto mining agency that has been struggling to maintain working amid the continuing bear market. On Oct. 26, Bitcoin miner Core Scientific filed kinds with the USA Securities and Change Fee, warning about potential bankruptcy proceedings. The agency cited unlucky business occasions like low BTC costs, elevated electrical energy prices and different points.