On Oct. 31, 2022, the publicly-listed bitcoin miner Argo Blockchain revealed the firm’s attempt to obtain $27 million in a scheduled financing deal fell through. According to the company’s October update, Argo said it did not believe the deal “will be consummated” and now two market analysts have downgraded the company’s shares.
Argo Blockchain’s $27 Million Financing Deal Falls Through, Stock Shudders, Wall Street Analysts Downgrade ARBK Shares
Bitcoin miners face significant pressures, as several publicly-listed mining businesses have experienced financial hardships or bankruptcies. The recent mining difficulty all-time high has not helped, and the fact that Bitcoin’s hashrate price reached an all-time low, it has crippled specific mining businesses.
After the speculation around mining companies such as Compute North or Core Scientific, Argo Blockchain has (Nasdaq. ARBK) provided investors an alarming update regarding a $27million financing deal.
“As previously disclosed, [Argo Blockchain] signed a non-binding LOI with a strategic investor to raise approximately £24 million($27 million) via a subscription for ordinary shares,” Argo’s filing details. [Argo Blockchain]This subscription is not likely to be completed under the terms previously disclosed. Argo is continuing to explore other financing opportunities.”
Argo’s shares, ARBK, have plummeted during the last 24 hours, losing 14.86% against the U.S. dollar by 1:22 p.m. (ET). Then the financial institution Canaccord Genuity slashed the shares down to hold from buy, and Jefferies analysts’ Bolor Enkhbaatar and Jonathan Petersen downgraded the company’s shares to a hold as well. Petersen told clients that if Argo was able to reduce the miner’s debt it would bolster “significant flexibility in these volatile times.”
ARBK shares have fallen to $0.95 at press time. ARBK’s performance against the U.S. Dollar over the past six months has been 88.54% lower than it was in January. Year-to-date, the publicly-listed bitcoin miner Argo’s stock is down 92.74%. Argo actively sold bitcoin (BTC), selling 887 BTC and 637 BTC respectively in July 2022. In the October update, Argo further noted that it sold 3,843 new-in-box Bitmain S19J Pro machines for cash proceeds and to “further maximize liquidity.”
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