Argo Blockchain is at risk of closing if it fails further financing

The London Stock Exchange-listed cryptocurrency steadfast Argo Blockchain has warned that it’s astatine hazard of ceasing operations owed to a deficiency of financing.

The crypto mining institution Argo Blockchain continues to research caller financing opportunities aft failing to rise large superior from a strategical investor, according to an announcement connected Oct. 31.

Argo has been seeking to rise astir 24 cardinal British pounds ($27 million) via subscription for mean shares. “The institution nary longer believes that this subscription volition beryllium consummated nether the antecedently announced terms,” Argo said successful a statement.

While Argo is exploring different financing options, determination tin beryllium nary assurance that it volition motion immoderate definitive agreements oregon consummate immoderate deals. The steadfast volition proceed to enactment to scope capable superior for astatine slightest adjacent 12 months from the time of the announcement, Argo noted.

Argo volition person to chopped oregon lawsuit halt operations successful lawsuit it fails to rise superior during this period, the steadfast noted, stating:

“Should Argo beryllium unsuccessful successful completing immoderate further financing, Argo would go currency travel antagonistic successful the adjacent word and would request to curtail oregon cease operations.”

Amid the deficiency of financing, Argo has been taking measures to sphere currency and optimize liquidity. The institution sold 3,843 marque caller Bitmain S19J Pro miners for $5.6 million, which was the past batch of the archetypal Bitmain bid scheduled for installation successful October 2022. Argo’s full hashrate capableness remained astatine 2.5 exahashes per second.

Related: Bitcoin miners rethink concern strategies to past long-term

Previously, Argo has besides been actively selling its mined Bitcoin (BTC) holdings successful bid to chopped indebtedness to Michael Novogratz’s crypto concern steadfast Galaxy Digital. In July, Argo sold different 887 BTC aft antecedently getting escaped of 637 BTC successful June 2022. In doing so, Argo became 1 of galore crypto mining firms that opted to merchantability self-mined BTC amid the carnivore marketplace of 2022, including Bitfarms, Core Scientific and Riot Blockchain.

Argo is not the lone crypto mining steadfast that has been struggling to support operating amid the ongoing carnivore market. On Oct. 26, Bitcoin miner Core Scientific filed forms with the United States Securities and Exchange Commission, warning astir imaginable bankruptcy proceedings. The steadfast cited unfortunate manufacture events similar debased BTC prices, accrued energy costs and different issues.