Argo Blockchain is vulnerable to closing if it fails additional financing

The London Stock Exchange-listed cryptocurrency agency Argo Blockchain has warned that it’s vulnerable to ceasing operations as a consequence of an absence of financing.

The crypto mining firm Argo Blockchain continues to discover new financing alternatives after failing to boost main capital from a strategic investor, in response to an announcement on Oct. 31.

Argo has been in search of to boost about 24 million British kilos ($27 million) through subscription for unusual shares. “The company no longer believes that this subscription will be consummated under the previously announced terms,” Argo stated in a press release.

While Argo is exploring different financing choices, there might be no assurance that it’ll signal any definitive agreements or consummate any offers. The agency will proceed to work to succeed in ample capital for at the least the subsequent 12 months from the day of the announcement, Argo famous.

Argo must lower or occasion halt operations in case it fails to boost capital throughout this era, the agency famous, stating:

“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.”

Amid the dearth of financing, Argo has been taking measures to protect money and optimize liquidity. The firm offered 3,843 brand-new Bitmain S19J Pro miners for $5.6 million, which was the final batch of the unique Bitmain order scheduled for set up in October 2022. Argo’s complete hash fee capability remained at 2.5 exahashes per second.

Related: Bitcoin miners rethink business strategies to survive long-term

Previously, 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 offered one other 887 BTC after beforehand getting rid of 637 BTC in June 2022. In doing so, Argo grew to become one in all 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 will not be the one crypto mining agency that has been struggling to maintain working amid the continued bear market. On Oct. 26, Bitcoin miner Core Scientific filed types with the United States Securities and Exchange Commission, warning about potential bankruptcy proceedings. The agency cited unlucky trade occasions like low BTC costs, elevated electrical energy prices and different points.