Argo Blockchain Plummet As It Announces Proposal To Fund $34 Million

On Friday morning, Argo Blockchain presented a proposal to strengthen its balance sheet in the face of falling bitcoin prices and soaring energy costs, shattering investor confidence.

The London-listed company intends to sell 3,400 mining machines for a total of £6 million ($6.8 million) in cash. According to a press statement, it will also raise about £24 million ($27 million) through a potential subscription with a strategic investor.

Argo Blockchain releasing $5 million (£5 million) in restricted funds

Additionally, it modified an existing equipment finance contract, releasing $5 million (£5 million) in restricted funds.

The moves were made to ensure it “has the working capital necessary to execute its current strategy and meet its obligations over the next twelve months,” it 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,” said Peter Wall, CEO at Argo, in the release. 

On October 11, the company will provide its subsequent normal monthly operational update.

Early trade in London saw a small decline of up to 15% in shares, which by mid-morning were circling the £29.10 level. Meanwhile, Bitcoin had dropped 0.8% over the previous day and was hovering around the $20,000 mark.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Annie

CoinCu News