Mining company Argo announced that its $27 million financing plan failed, and its stock price plummeted by more than 50%

余YU

读者

2022-11-01 07:44

This article is about 1038 words, reading the full article takes about 2 minutes

In the future, if the financing cannot be successfully obtained, the business may need to be reduced or ceased operation.

This article comes fromDecrypt, original author: Alys Key

Odaily Translator |

On October 31, Argo Blockchain, a cryptocurrency mining company, revealed that the previously announced 24 million pounds (about 27 million U.S. dollars) financing plan could not be completed, and its stock price plummeted that day.It is reported that Argo Blockchain is listed on the London Stock Exchange and NASDAQ.Argo Blockchain said in a statement to shareholders

, the plan to sell shares to raise more cash will no longer be completed in accordance with previously announced terms.

After the news came out that day, the company's share price fell 40% in early trading in the London market, while its New York stock fell 37.5% in pre-market trading; eventually closing down on Monday reached 51.92% and 43.65%, respectively.

The statement mentioned, “While Argo is exploring other financing opportunities, there can be no assurance that any definitive agreement will be signed or any transaction will be completed. If Argo is unable to successfully complete any further financing, Argo will experience negative cash flow in the short term and will need to Reduce operations or cease operations."

Argo Blockchain announced plans to raise $27 million in early September as part of a series of measures to strengthen its balance sheet. At the time, the company said it had reached a non-binding agreement with an unnamed investor committing to buy 87 million shares at 0.276 pounds ($0.32) each.

When Decrypt contacted Argo Blockchain, a company representative declined to provide further details on why its investors were no longer buying shares.

With the deal no longer in progress, Argo said it was examining options and taking other steps to stockpile cash, such as selling its mining equipment. It just sold 3,843 of its brand new Bitmain S19J Pro miners for $5.6 million.Like many other mining companies,Argo has also been dumping its Bitcoin reserves

to shore up its balance sheet.

Founded in 2017, Argo claims to be the first climate-friendly crypto mining company, and its mines mainly use energy such as hydropower, wind power and solar power.But that hasn't protected it from rising energy prices. Earlier this month, Argo wasChina said it had been scaling back operations at its Helios mine in Texas amid high electricity prices.

secondary title

Bitcoin miners face an existential crisis

Argo is just one of many struggling crypto mining companies that are grappling with rising costs and difficulty.

Last week, Core Scientific, one of the largest miners, warned it expected to run out of money by the end of the year and could enter bankruptcy proceedings.