London-based bitcoin miner Argo Blockchain has raised $27 million after agreeing to issue 87 million shares to a sole investor.Read MoreCoinDesk
London-based bitcoin (BTC) miner Argo Blockchain (ARB) has raised $27 million after agreeing to issue 87 million shares to a sole investor.
In an announcement published on YouTube, the firm’s CEO Peter Wall explained a number of steps Argo Blockchain has taken to improve its liquidity position in light of the ongoing crypto bear market.
“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,” Peter Wall said.
In addition to issuing 87 million shares, which equates to around 15% of the business, Argo announced the sale of 3,400 Antminer S19 J Pro miners to a third party for a total of $7 million. The sale of mining equipment will cause a reduction in hash rate, Wall added.
Soaring energy prices coupled with a plunge in the value of cryptocurrencies has created a difficult environment across the mining industry. Compute North, one of the largest operators of crypto-mining data centers, recently filed for bankruptcy after it owed as much as $500 million to at least 200 creditors.
“Assuming all of the transactions close, we’re confident we have the liquidity and balance sheet to get us through the next 12 months,” Wall concluded.
At press time, shares of Argo Blockchain were down over 15% on the London Stock Exchange.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
With the price surging above $90,000, you’re likely all too aware that everything that isn’t…
While the last year or two have seen a number of proposals for covenant-proposing extensions…
Picture this, dear reader: It’s 2016, and for the princely sum of $288,400, you could…
Follow Nikolaus On X Here Today, Fox Business’s Eleanor Terrett revealed that the Pennsylvania House…
Look, I am not an expert in public markets, but raising money to buy more…
Bitcoin set a new all-time high yesterday, reaching $93,483, continuing its impressive rally without significant…