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

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Argo Blockchain, a London Stock Exchange-listed cryptocurrency company, has warned that it risks shutting down operations due to lack of funds.

Cryptocurrency mining company Argo Blockchain Continue The company announced on October 31 that it will seek new funding opportunities after failing to raise major funding from strategic investors.

Argo is looking to raise approximately £24m ($27m) through an ordinary share subscription. “The company no longer believes that this subscription will be completed under its previously announced terms,” Argo said in a statement.

Argo is exploring other financing options, but there is no guarantee that a definitive agreement will be signed or the transaction will be completed. Argo says it will continue its efforts to secure adequate capital for at least the next 12 months from the date of the announcement.

Argo will have to scale back or even cease operations in case it fails to raise funds during this period, the company said.

“If Algo is unable to complete further funding, Algo will be cash flow negative in the near term and will be required to wind down or cease operations.”

In the face of cash shortages, Argo is taking steps to preserve cash and optimize liquidity. The company sold his 3,843 new Bitmain S19J Pro miners for his $5.6 million. This was the last batch of the first Bitmain order scheduled for installation in October 2022. Argo’s total hash rate capacity remained at 2.5 exahashes per second.

Related: Bitcoin miners rethink business strategy to survive in the long run

Previously, Algo actively sold mined Bitcoin (Bitcoin) collection to reduce debt to Michael Novogratz’s crypto investment firm Galaxy Digital. In July, Argo sold another 887 BTC following its previous Remove 637 BTC In doing so, Argo is one of many crypto mining companies, including Bitfarms, Core Scientific and Riot Blockchain, that have chosen to sell self-mined BTC during the 2022 bear market.

Argo is not the only cryptocurrency mining company struggling to stay in business amid the ongoing turmoil. bear marketOn October 26th, Bitcoin miner Core Scientific filed a form with the US Securities and Exchange Commission. Warning about possible bankruptcy procedure. The company cites unfortunate industry events such as falling BTC prices, rising electricity prices and other issues.