(Commonwealth Union)_ Argo Blockchain, a cryptocurrency company registered on the London Stock Exchange, has issued a warning that it faces the possibility of halting operations because of a shortage of funding.
According to a report on October 31, the cryptocurrency mining start-up Argo Blockchain is still looking into fresh financing options after failing to get significant funding from a strategic investor. By subscribing for ordinary shares, Argo hopes to raise roughly 24 million pounds ($27 million). In a statement, Argo stated that “the business no longer believes that this subscription will be realised under the previously announced circumstances.”
While Argo is looking at other financing sources, there is no guarantee that it will sign any definite agreements or close any partnerships. Argo stated that the company will continue to seek to raise adequate financing for at least the next 12 months from the date of the release.
If Argo does not raise funds during this time period, it will have to reduce or perhaps discontinue operations, according to the company. “If Argo is unable to secure more financing, it will become cash flow negative in the near term and will be forced to reduce or discontinue operations.”
Argo has been taking actions to protect funds and maximise liquidity despite the lack of finance. The last batch of the initial Bitmain order, 3,843 brand-new Bitmain S19J Pro miners, which were supposed to be installed in October 2022, were sold by the company for $5.6 million. The maximum hash rate that Argo could process remained at 2.5 exahashes per second.
Previously, Argo actively sold its mined Bitcoin holdings in order to reduce debt to Michael Novogratz’s cryptocurrency investment firm Galaxy Digital. Argo sold another 887 BTC in July after already selling 637 BTC in June 2022. Argo became one of many crypto mining firms, including Bitfarms, Core Scientific, and Riot Blockchain, to sell self-mined BTC during the 2022 down market.
Argo is not the only cryptocurrency mining company battling to stay afloat in the face of the prolonged bear market. Bitcoin miner Core Scientific issued a bankruptcy warning in documents filed with the US Securities and Exchange Commission on October 26. The company claimed unfavourable business developments like low BTC pricing, rising electricity rates, and other problems.
