Although the crypto winter may be ending, the impact it had on Bitcoin and its market continues. Many companies that are related to crypto have fallen prey to the market’s pressures. Some are still battling to stay afloat despite the forces’ influence while managing their operations.
Many companies involved in Bitcoin mining are feeling the heat of this market fluctuation. Most Bitcoin miners have shut down businesses, but some filed for bankruptcy as they couldn’t weather the storm.
Argo Blockchain is facing negative cash flows, and its share price has fallen. For the giant crypto mining company, financing their ongoing operations is becoming more difficult. A failure in this financing process could cause a halt to the operation or result in drastic cash drops in future.
Bitcoin Mining Giant Argo Blockchain Has No Appropriate Sources To Fight Bankruptcy
BTC Miner released a statement revealing its financial plan. It also noted that the company has explored many economic opportunities. It has not been able to give any assurance that such deals will be signed or completed.
The company needed to engage in financial transactions that would provide enough cash flow for operations. To avoid bankruptcy, the company must sustain its economic growth in the twelve months ahead.
The press reported that the company had an agreement with an investor for $27 million in shares subscriptions. The attempt was unsuccessful.
Argo Blockchain also reported that it had sold some mining equipment in order to increase its cash flow and preserve its liquidity. For example, it recorded selling about 3,843 brand-new Bitman S19J Pro machines in the firm’s last batch of inventory scheduled for October.
Argo Blockchain Stock Plummets
Following the recent downward financial stance, Argo’s shares performance has plummeted. According to the data, there was a decrease of close to 50% within 24 hours. Stocks reports from the beginning show a decline of almost 50%.
Argo is in a long-running struggle. The September 2021 loan was $25 million BTC-backed by Galaxy Digital. The loan targets to support the miner’s cash flow requirements and expansion plans in West Texas.
Argo sold its BTC monthly through 2022. It is necessary for Argo to decrease its portion of the agreement as well as increase its financial position. The firm had sold approximately 637 Bitcoins at $24,500 each token in June 2018.
It seems that it sells more Bitcoin tokens then it produces. It sold 637 BTC tokens and produced 179 BTC during June.
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