bitcoin miner Algo Blockchain (ARBs) faces challenging business conditions in 2022 characterized by high energy prices. degree of interest When cryptocurrency market slump.
The company sold its assets mining Equipment, 15% stake sale, and bitcoin holdings will strengthen working capital until favorable economic conditions return.
Investors have been avoiding the bitcoin mining sector in 2022, with cryptocurrency miner Core Scientific becoming the latest company to warn of bankruptcy risk.
As of October 28, 2022, Argo Blockchain’s London-listed shares are down more than 80% year-to-date.intention Argo Blockchain stock price its extension sell offHere we take a look at what the Argo Blockchain stock sale means for the price.?
What is agroblockchain?
Argo Blockchain is a cryptocurrency mining company based in London, United Kingdom. The company’s primary listing is on the London Stock Exchange (LSE) under the ticker ARB.
In September 2021, Argo Blockchain will list its American Depositary Shares (ADS). nasdaq stock exchange It is sold in the US under the ticker ARBKL.
Argo Blockchain started as a mining-as-a-service company before changing its strategy to own and operate its own mining facility. The company’s principal mining facility is located in Texas, USA. Owns two of his mining facilities in Canada.
The majority of the company’s revenue comes from transaction fees and cryptocurrency rewards generated via Bitcoin (Bitcoin) mining. Another cryptocurrency mined by Argo Blockchain is the Proof of Work (prisoner of war) Cryptocurrency Zcash.
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Argo Blockchain Stock Sale: A Sector-Wide Slump
Argo Blockchain isn’t the only Bitcoin miner whose stock has plummeted in 2022. The entire cryptocurrency mining sector is currently facing its toughest test yet.
Bitcoin miner is in survival mode. They are aggressively cutting costs and scaling back their mining operations to survive this period of high electricity bills and low cryptocurrency prices.
US-listed Bitcoin miner Core Scientific was the latest company to flag. Liquidity concern.The company said in a statement SEC filing In late October 2022, we inform you that the next equipment and financing payments scheduled for October and November will default.
Core Scientific expects “existing cash resources to be depleted by the end of 2022,” adding that it can “seek relief under applicable bankruptcy or bankruptcy law.”
It’s not just about soaring electricity bills and cryptocurrencies bear market It’s hurting the biggest bitcoin mining companies. The global Bitcoin network hash rate, which measures the difficulty of mining bitcoins, will hit a record high in October 2022, squeezing mining profitability. Did.
Algo Blockchain report Bitcoin mining volume in September was lower than in August. This is due to an increase in average mining difficulty and a reduction in operations during periods of high electricity prices.
In recent months, Argo Blockchain has taken steps to strengthen its balance sheet and prevent further declines in ARB’s stock price.
according to Press release dated October 7, the company amended an existing equipment financing agreement with an affiliate of the New York Digital Investment Group. The new deal freed up an additional £5m ($5.7m) in cash and changed the debt repayment deadline.
Argo Blockchain has also sold 3,400 new Bitcoin mining Bitmain S19J Pro machines for £6 million and signed a profit sharing agreement to host the mining equipment sold.
In addition, Argo Blockchain raised £24m by selling 87m shares to private investors for £0.276. Cryptocurrency Miner says:
“We believe our working capital will be sufficient for our current requirements, i.e. at least for the next 12 months from the date of this announcement.”
according to it intermediate results, short-term loans on Argo Blockchain amounted to around £43.9m as of 30 June 2022.Total carrying value of the company’s financial liabilities, including long-term loans and outstanding debt bondsexceeding £135.6m as at 30 June 2022.
Algo Blockchain has sold its bitcoin holdings in recent months to secure liquidity. The company’s bitcoin holdings have fallen from 1,953 BTC at the end of June 2022 to 512 BTC at the end of September 2022.
Analyst Expectations for Argo Blockchain Stock
Investment firm Jefferies said in a note dated August 25:
“ARBK plans to nearly double its mining capacity (from YE21) by the end of 2022 and expects a 40% increase in revenue from FY21 to FY23. ARBK can keep operating costs low in the long run.In addition, ARBK’s focus on sustainable energy and the potential benefits it derives from its DeFi investments differentiate the company from its peers. ”
Jefferies has evaluated the share purchase and has set a price target for Argo Blockchain at £41 for London-listed shares and $4.93 for US-listed shares.
Four out of seven analysts rated the stock as “hold” and the rest as “sold.” market beat As of October 28th. The US-listed Argo Blockchain stock had a consensus price target of $10.50, with a high of $27 and a low of $3.
Please note that analyst forecasts may be wrong. Forecasts should not be used as a substitute for your own research. Wide range of analyst currencies, latest news, technical When Fundamental analysisPast performance is no guarantee of future returns, do not trade funds you cannot afford to lose.
Frequently Asked Questions
Is the Argo Blockchain for sale?
Four out of seven analysts rated the stock as “hold” and the rest as “sold.” market beat, as of 28 October. The US-listed Argo Blockchain stock has a consensus target price of $10.50, with a high of $27 and a low of $3.
How many shares of Argo Blockchain do you own?
As of October 28, Reuters data The total number of issued shares of Argo Blockchain was 468.08 million.
Will Argo Blockchain Pay Dividends?
“We intend to reserve any profits for use in our business and have no plans to pay cash. dividend in the near future,” the company said. SEC filing.
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