Argo Blockchain, one of the world’s leading cryptocurrency miners has revealed that the company is on the verge of experiencing a negative financial cash flow which may eventually bring an end to its operations in the near future if a prospective deal fails.
The news was announced via a press release today. According to the report, Argo had previously signed a non-binding agreement with an investor to invest about £24 million ($27 million) in its shares through subscription but the company no longer thinks that the terms of the previously announced subscription will be fulfilled.
Argo Blockchain intended to use the net proceeds of the Subscription for working capital and other general corporate purposes, including capital expenditures related to the ongoing construction of its flagship Helios facility in Dickens County, Texas.
Argo is however still looking into other investment options if the deal eventually fails. The company previously sold 3,843 brand-new Bitman mining machines for approximately $5.6 million in order to preserve cash and maximize liquidity.
The firm also aggressively manages its Bitcoin (BTC) holdings and uses a range of derivatives to reduce risk exposure while closely monitoring market circumstances.
Recent Operations in Argo Blockchain
Argo Blockchain is a major player in the field of cryptocurrency mining that promotes the use of renewable energy sources in order to assist the expansion and advancement of blockchain technologies. With operations in key cities across North America, the corporation has its headquarters in London, United Kingdom, and its shares are listed on the Main Market of the London Stock Exchange.
The recent announcement may pose a problem for Argo in the short term as the company’s share price has decreased by more than 50% as a result of the revelation. For the year, shares of Argo on the London Stock Exchange are down 91%. The company substantially cut its hash rate growth prediction in August by 42%.
Argo mined 215 Bitcoin or Bitcoin Equivalents (collectively, BTC) in September compared to 235 BTC in August 2022. The average network difficulty increased by 12% in September, which is the main cause of the drop in BTC mined.
There has been a restructuring in the organization of Argo. Perry Hothi who was previously serving as Argo’s chief technology officer now works with the company as a transitional advisor. Additionally, the Company welcomed Jason Zaluski to the team as Vice President of Mining with great enthusiasm.
