Key Takeaways
- Argo stated that if it doesn’t get any financing, it would become cash flow negative soon and would need to stop operations.
- Argo mined only 198 bitcoin in November, compared to 204 in October.
Shares of Bitcoin Miner Argo Blockchain were suspended in the U.K. and U.S. on Friday after the company reported a drop in revenue in November.
Argo, which has been facing a liquidity scare for some while, said it was continuing to engage in financing discussions to “provide the company with working capital sufficient for its present requirements.” The miner added that “a further announcement on this will be made in due course.”
In October, Argo revealed that a deal to raise $27 million from a strategic investor was unsuccessful, sending its shares falling more than 70%. In its latest statement to London Stock Exchange, the company said that if the firm doesn’t get any financing, it would become cash flow negative soon and would need to curtail or cease operations.
Argo mined 198 bitcoin or bitcoin equivalents in November, compared to 204 in October. This was primarily owing to an increase in the bitcoin network difficulty. The company’s total hash rate continues to be 2.5 exahash per second. Argo’s November mining margin was 29%, down from 32% in October.
The latest development comes amid unconfirmed reports that Argo Blockchain has also filed for bankruptcy. This was first brought to light by Will Foxley, the Content Director at Compass Mining, who shared a screenshot of the special announcement from Argo Blockchain, which hinted that the firm might be preparing to file for bankruptcy.
Bitcoin mining companies have struggled a lot this year, with the fall in the price of Bitcoin and rising energy prices/operating costs leading to a decline in revenue. Blockstream, a leading Bitcoin miner, recently raised funds at a 70% discount. According to analytical reports, comparing the current bear mining cycles, a minimum of 138 bear market days may continue before the market turns to offer more favorable conditions.
