Argo Blockchain was unable to attract £ 24 million joint -stock capital

Argo Blockchain recognized that the company’s deal to sell the company’s strategic investor for £ 24 million to replenish working capital fell out.

“The company no longer believes that this subscription will be completed on previously declared conditions. Argo continues to study other financing opportunities, ”the press release says.

In order to obtain liquidity, the company sold 3843 new Antminer S19J Pro ASIC from Bitmain. This was the last batch of supplies planned for October. ARGO revenue amounted to about £ 4.8 million.

As a result, the company hashrate in the Bitcoin network remained the same – 2.5 eh/s. Earlier, despite the announcement of the implementation of the equipment, the Argo was expected to reach a 2.9 eh/s indicator at the end of October.

“If Argo fails to get any further funding, in the near future the cash flow will become negative, and the company will have to reduce or stop the operations,” the mining company said.

At the time of writing, the company’s stocks on the London Stock Exchange (LSE) collapsed by more than 46%. Papers are traded at £ 8.4, while at the peak in February 2021, £ 282 cost.

Recall that in September, Arcane Research analysts came to the conclusion that public mining companies retain financial stability, despite adverse market conditions.

However, the vast majority of them reflected retained loss on the balance sheet, experts noted. The exception was Argo.

In the same month, the Compute North not trading on the exchange has submitted a bankruptcy statement.

In October, Core Scientific warned about the risk of exhausting liquidity until the end of the year and possible insolvency.

Read the FORKLOG Bitcoin News in our Telegram-cryptocurrency news, courses and analytics.