Argo Blockchain’s share price has dropped by about 50% every day and more than 80% since the beginning of the year. Argo Blockchain, a cryptocurrency mining behemoth, may reduce or suspend operations if it does not receive further funding.
With the current crypto winter, more bitcoin miners are struggling to stay in business, and others have declared bankruptcy. Argo Blockchain stated in a press release on Monday (October 31, 2022) that its previous effort to raise £23.4 million in n partnership with an investor through a shares subscription fell through.
In addition, the bitcoin miner stated that it sold 3,843 brand-new Bitmain S19J Pro machines to optimize liquidity and save cash. The sold machines were part of the final batch of inventory set to go operational in October.
While Argo claimed that it intends to seek additional financing opportunities, the business noted that there are no guarantees of completed deals or signed definitive agreements. According to a statement in the announcement, Argo may face cash flow issues in the near future:
“If Argo cannot secure more financing, it will become cash flow negative in the near term and will be forced to reduce or discontinue operations.”
Argo’s stock dropped nearly 50% after the recent news release. Since the beginning of the year, the stock market has dropped by more than 80%. Bitcoin mining companies have been battling to stay in business during the bear market. Compute north filed for Chapter 11 bankruptcy in September, revealing a massive £443.3 million debt to over 200 creditors.