Argo Blockchain has claimed that a $27 million fundraising arrangement is unlikely to materialize.
Argo Blockchain, a UK-listed Bitcoin miner has warned that it may experience negative cash flow in the near future due to the failure of a funding arrangement.
Prior to October, Argo intended to raise £24 million ($27 million) through a subscription agreement with a strategic investor. This transaction was in addition to a $5.6 million inventory sale including the cash sale of 3,843 Bitcoin mining rigs. However, the business said on Monday that it does not expect the transaction to proceed.
Due to the failure of the planned funding strategy, Argo said it is evaluating other possibilities. However, the revelation might have some unfavourable short-term effects on the corporation. “Should Argo be unable to secure further funding, Argo would experience negative cash flow in the near future and be forced to reduce or halt operations,” the business claimed.
The statement made on Monday is the latest in a run of negative news for Bitcoin miners. As a result of the disclosure, the firm’s stock price has fallen by more than 50 percent. Shares of Argo are down 91% so far this year. In August, the business also reduced its hash rate growth forecast by 42%.
Argo’s difficulties are shared by Bitcoin miners contending with the weak market and escalating energy prices. The share price of Core Scientific, another Bitcoin mining business, fell by 75% last week rumours circulated of a possible bankruptcy filing.
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