Argo Blockchain is a bitcoin miner that has been hit by low bitcoin prices and rising energy costs. It has been unable to secure a fixed-rate electricity contract, which means that it could soon have negative cash flow. In light of these issues, the company has made a press release disclosing its past financial plans.
However, despite its efforts to raise funding, Argo is facing liquidity problems. The company is currently experiencing a 50% drop in shares and is in danger of going bankrupt if it does not secure additional funding. In the last three months, Argo Blockchain has had difficulty raising funds, and its shares have plunged. However, it has taken strategic steps to meet its obligations and implement its strategy. In late October, DA Davidson analyst Chris Brendler downgraded the stock. The company has warned investors of the risk of bankruptcy and has sold off mining rigs.
In response to the lack of capital, Argo is exploring alternative financing methods to raise the necessary funds for operations. While it cannot guarantee that any of these deals will materialize, the company is committed to working to raise sufficient capital in the next 12 months. It will continue to work on these efforts in the meantime.
Amid the turmoil, Argo has recently sold a significant portion of its mined Bitcoin. This was done to comply with a contract and to increase its balance sheet. The company sold 637 Bitcoins in June at a rate of $24,500 per token. This was more than the company mined in a single month.
Argo Blockchain PLC is a blockchain technology company that focuses on large-scale mining of cryptocurrencies. The company operates a number of data centres in North America and the United Kingdom. Its stocks are listed on the London Stock Exchange and the NASDAQ Global Select Market in the United States. The company was founded in 2017 and is headquartered in London, UK.