Argo Blockchain’s Deal To Raise $27 Million Has Fallen Through
Argo Blockchain, a Bitcoin miner registered in the United Kingdom, has stated that it may soon face negative cash flow after a funding arrangement fell through.
Argo Blockchain has announced that a proposal to raise 24 million British pounds ($27 million) from a strategic investor has fallen through, sending the Bitcoin mining company’s stock down 72%.
The London-based business, which signed a letter of intent earlier this month to sell 87 million shares to the investor to relieve liquidity problems, could not explain why the transaction had been called off. It negotiates other transactions to provide working cash for the next 12 months.
The company said in a statement:
“While Argo is exploring other financing opportunities, there can be no assurance that any definitive agreements will be signed or that any transactions will be consummated. 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.”
Core Scientific also informed investors last week that it may have to consider bankruptcy; this is just one of many examples demonstrating that the Bitcoin mining business is at a crossroads as it contends with skyrocketing energy expenses and a stagnant value of cryptocurrency.
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