Shares of cryptocurrency miner Argo Blockchain plummeted after the company revealed that a planned £24m ($27m) funding round would no longer take place.
The business, which is listed on both the London Stock Exchange and the Nasdaq, Statement to Shareholders The plan to sell shares to raise more cash will not be completed under previously announced terms.
The company’s shares fell 40% in early London trading on the news, while New York shares fell 37.5% in pre-market trading.
“Argo is exploring other funding opportunities, but there is no assurance that a definitive agreement will be signed or that the transaction will be completed,” the statement 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.”
Plans to raise $27 million were announced in early September as part of a series of steps to strengthen the group’s balance sheet. At the time, the company said it had entered into a non-binding agreement with an unnamed investor, who would buy him 87 million shares for £0.276 ($0.32) per share. had promised
Argo representatives declined to provide details as to why the investor’s purchase could not go any further. Decryption.
With the deal no longer in progress, Argo says it is exploring options and taking other steps to preserve cash, such as selling mining equipment. 3,843 new inbox Bitmain S19J Pro machines sold for his $5.6 million.
Like many other miners, Argo also in the meantime Dumping Bitcoin ReservesWe are trying to strengthen our balance sheet.
Founded in 2017, the business claims to be the first climate-positive cryptocurrency miner. The facility aims to source energy primarily from hydro, wind and solar power.
However, this did not protect the company from the pressure of rising energy costs. Earlier this month, the group said: operational update The company has been curtailing operations at its Helios facility in Texas amid soaring electricity prices.
Bitcoin miners face an existential crisis
Argo’s plight is the latest in a series of distress signals from cryptocurrency miners struggling to keep up with rising costs and difficulties.