Argo Blockchain Raises $27 Million Through An Issuance Of Shares

Investors’ faith in Argo Blockchain was shaken on Friday morning when the company revealed a strategy to shore up its financial sheet in the face of falling bitcoin prices and skyrocketing energy expenses.

Argo Blockchain, a Bitcoin miner located in London, has raised $27 million by agreeing to issue 87 million shares to a single investor.

The firm’s CEO, Peter Wall, highlighted a number of initiatives Argo Blockchain has done to bolster its liquidity position in light of the recent crypto bear market in a YouTube video. Wall said:

“Our profitability has been squeezed from both sides from higher energy prices to lower Bitcoin price, that’s resulted in a cash crunch for Argo.”

In addition to selling 87 million shares, or around 15% of the company, Argo announced the sale of 3,400 Antminer S19 J Pro miners to a third party for $7 million. The sale of mining equipment will reduce hashrate, according to Wall.

“Assuming all of the transactions close, we’re confident we have the liquidity and balance sheet to get us through the next 12 months,” Wall stated.

Soaring energy prices, along with a drop in cryptocurrency value, have produced a tough climate for the mining business. Compute North, one of the major operators of cryptocurrency-mining data centers, has declared bankruptcy after owing up to $500 million.

Wall added:

“After careful consideration, we are convinced that taking these steps will better position the company to navigate the current market conditions and preserve shareholder value.”

On October 11, the firm will provide its next regular monthly operating update. The company’s shares fell as much as 15% in early London trade, lingering around the £29.10 level by mid-morning.

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