Cryptocurrency mining giant Argo Blockchain could cut down or halt operations if the company fails to complete any more financing.
With the ongoing crypto winter, more bitcoin miners continue to struggle to maintain operations, while some have filed for bankruptcy.
- In a press release on Monday (October 31, 2022), Argo Blockchain revealed that its previous plan to raise $27 million in partnership with an investor through a shares subscription fell through.
- The bitcoin miner also mentioned that it sold 3,843 brand-new Bitmain S19J Pro machines as a way to maximize liquidity and preserve cash. The sold machines were the final batch of inventory scheduled to go live this October.
- While Argo stated plans to source for other financing opportunities, the company said there are no assurances of completed transactions or signed definitive agreements. According to a statement from the announcement, Argo could be facing cash flow problems in the short term:
“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.”
- As previously reported by CryptoPotato, the bitcoin miner has been involved in selling more BTC than producing. In June, Argo sold 637 bitcoin.
- Following the latest press release, Argo’s shares plummeted nearly 50%. The stocks are down by over 80% since the start of the year.
- Bitcoin mining firms have been struggling to maintain operations amid the current bear market. In September, Compute North filed for Chapter 11 bankruptcy after revealing a debt of a whopping $500 million to more than 200 creditors.