Argo Blockchain, a UK-listed Bitcoin miner, has announced that it could be facing negative cash flow in the near term after seeing a financing deal fall through.
Argo previously had plans to raise £24 million ($27 million) via a subscription deal with a strategic investor earlier in October. This deal was in addition to a $5.6 million inventory sale that involved selling 3,843 Bitcoin mining machines for cash. However, the company announced on Monday that it does not believe the deal will go forward.
With the proposed financing plan falling through, Argo says it is exploring other options. However, the news could have some negative implications for the company in the short term. “Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations,” the company stated.
Monday’s announcement is the latest in a string of bad news for the Bitcoin miner. The firm’s share price has collapsed more than 50% on the back of the announcement. Argo’s shares are down 91% year-to-date. The company also slashed its hash rate growth estimate by 42% in August.
Argo’s troubles are a common theme among Bitcoin miners struggling with the bear market and surging energy costs. Core Scientific, another Bitcoin mining company, saw its share price decline by 75% last week amid talk of a potential bankruptcy filing.
Update: Removed definition of what being cash-flow negative entails.
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