Argo Blockchain will attract £ 24 million to replenish working capital
The British mining company Argo Blockchain intends to attract £ 24 million through the purchase by an unnamed strategic investor of 87 million ordinary shares.
According to the statement, the company faced a reduction in profitability and cash flow due to adverse market conditions. The company decided to take a number of measures to replenish working capital.
“Our profitability has suffered from two sides: from increasing energy prices and reducing bitcoin quotes, which led to a lack of funds,” explained CEO Argo Peter Wall.
Regarding the purchase of shares, the parties signed a non -amicable agreement. If the transaction is completed, the share of the investor in ARGO will be 15.46%, he will receive two places in the Council of Directors of the seven members.
Among other steps, the company reached an agreement with Nydig on amendments to the current credit agreement. It is expected that their implementation will allow Argo to release about £ 5 million. It is supposed to close the transaction during the “several next weeks”.
The London company also entered into an agreement for the sale of 3400 new Bitcoin Mainers Antminer S19J from Bitmain. For equipment with a total hash of ~ 340 ph/s, the company will receive £ 6 million. Argo will install devices for the third party in the Helios Date Center in Texas (USA) on a paid hosting basis.
Despite the implementation of a batch of equipment, the company plan to reach a hashrate at the end of October 2.9 EH/S.
“Assuming that all transactions will be completed, we are sure that we have liquidity and balance to live the next 12 months,” Wall emphasized.
At the time of writing, the Argo campaign on the London Stock Exchange (LSE) collapsed by almost 15%. Since the beginning of the year, the company’s quotes have fallen by more than 75%.
Recall that in September, Arcane Research analysts came to the conclusion that public mining companies retain financial stability, despite adverse market conditions.
However, the vast majority of them reflected retained loss on the balance sheet, experts noted. The exception was Argo.
In the same month, the Compute North not trading on “Fiscal risk is the exchange has submitted a bankruptcy statement.
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