Bitcoin miner Argo Blockchain (LSE: ARB), which is based in London recently announced that it was considering a fundraising campaign to relieve the liquidity crisis they have been facing. The company also agreed to offer an issue of 87 million shares to a sole investor.
The company recently made an announcement in a video that has been published on YouTube. In the video, Argo Blockchain CEO Peter Wall noted the efforts of the company to maintain its liquidity positions amid the ongoing bear and extreme crypto market conditions. He went on to explain by saying that:
“Our profitability has been squeezed from both sides from higher energy prices to lower Bitcoin price, that’s resulted in a cash crunch for Argo.”
The amount of shares that the company is willing to sell is about 15% of the entire business. In addition, they even announced that they would be selling 3,400 Antminer S19 J Pro miners to another industry organization at a total price of $7 million. Wall noted that the sale of mining equipment would affect the hash rate speed and it will be reduced.
Such attempts were necessary as the company was a victim of the liquidity pressures that had arisen due to the rising energy prices and the crypto winter. The entire mining industry suffered due to this, and Bitcoin miner Argo Blockchain is no exception. In line with such negative developments, we also heard that Comput North, which is one of the most significant crypto-mining data centers’ operators, filed for bankruptcy. This latest crypto news even mentioned that the company owes about $500 million to over 200 creditors.
While on the other hand, Wall concluded his statement by saying:
“Assuming all of the transactions close, we’re confident we have the liquidity and balance sheet to get us through the next 12 months.”
Argo Blockchain Stock
The ARB stock on the London Stock Exchange plunged after the aforementioned crypto news broke out. The stock was down by a huge 14.71% and traded at GBX 29.00 (losing 5.00 points) at the time of writing on October 7, 2022. The volume traded till press time for the stock was 5,878,886. The ARB stock reached a new 52-week low of GBX 27.50 during the trading session. Currently, it seems that it won’t be able to recover enough to even be close to its 52-week high of GBX 155.00.