The company stated, “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.”
Bitcoin miner, Argo Blockchain, has been facing turbulent moments. The company states that its plan to raise $27 million from a strategic investor was unsuccessful. This led to a nosedive of Argo’s share by about 53%.
The Bitcoin miner announced this update in a tweet.
New RNS today contains updates on the strategic actions disclosed on 10/7.
— Argo (@ArgoBlockchain) October 31, 2022
We no longer expect to close the equity subscription on the terms disclosed and we're exploring other financing options.
We also sold 3,843 S19J Pro machines for $5.6m.
Full RNS: https://t.co/KthypzXCAT
Recall that earlier this month, Argo signed a letter of intent (LoI) to sell 87 million shares to the investor. This was in hopes that it would enable them to ease liquidity pressures. However, the agreement was later called off, and the company gave no reason.
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According to its October update, Argo canceled the previously signed letter of intent with a strategic investor to raise $27M through a subscription for ordinary shares. As a result, they will be exploring other financial options.
The company has made efforts to maximize liquidity and preserve cash. It has sold 3,843 Bitcoin S19J Pro machines, generating about $5.6 million.
However, Argo noted,
“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.”
Argo stated that it would continue to make efforts to finance transactions, have sufficient working capital to meet current requirements, and run the company for at least the next twelve months.
