Although the crypto winter is over, its impact on bitcoin and the crypto market remains the same. Many crypto-related firms have gone down the drain due to the pressure in the market. Some are still managing their operations, struggling to stay afloat despite the forces’ influence.
Most companies involved in bitcoin mining are getting more heat from market volatility. Most bitcoin miners have shut down business, but some filed for bankruptcy because they could not weather the storm.
Argo Blockchain is reportedly facing negative cash flow, with its shares falling in value. The pressure is getting more intense for the crypto mining giant to finance its continuing operations. More failures in locating such financing could lead to a halt in its process or a significant cash loss in the future.
Bitcoin Mining Giant Argo Blockchain Has No Enough Sources to Fight Insolvency
BTC miners released press statement Disclosure of your past financial plans. It noted how the firm is exploring diversified economic opportunities. However, it has no concrete assurance in signing such agreements or completing useful transactions.
This showed that the company needed to carry out financial activities while offering adequate working capital for its operational needs. Such economic growth is necessary for its stability in the next twelve months from today to avoid bankruptcy.
According to the press, the firm had plans to partner with an investor to generate $27 million through share subscriptions. However, the attempt was unsuccessful.
In addition, Argo Blockchain reported the sale of some of its mining equipment to preserve cash and increase its liquidity. For example, it recorded sales of approximately 3,843 brand-new Bitmain S19J Pro machines in the last batch of inventory scheduled for October.
Argo Blockchain Stock Plumes
Following a recent downward financial trend, Argo’s shares have underperformed. The data indicated a drop of around 50% in the last 24 hours. Also, stock reports show a decline of more than 80% since the beginning of the year.
Argo’s struggle has been going on for some time now. Finally, the bitcoin mining firm received a $25 million BTC-backed loan from Galaxy Digital, an investment management firm, in September 2021. The loan is intended to support the cash flow needs and expansion plans of miners in West Texas.
Argo is selling its BTC monthly during 2022. This move is a necessary option to reduce your portion of the agreement and increase your balance sheet. In June of this year, the firm sold approximately 637 bitcoins at $24,500 per token.
However, it seems that more bitcoin tokens are being sold than they have produced. In June, the company mined around 179 BTC but sold 637 BTC coins.
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