On Oct. 31, 2022, the publicly-listed bitcoin miner Argo Blockchain revealed the firm’s attempt to obtain $27 million in a scheduled financing deal fell through. According to the company’s October update, Argo said it did not believe the deal “will be consummated” and now two market analysts have downgraded the company’s shares.
Bitcoin miners have been facing significant pressures as a couple of publicly-listed mining firms have faced financial hardships and bankruptcies. The recent mining difficulty all-time high has not helped, and the fact that Bitcoin’s hashrate price reached an all-time low, it has crippled specific mining businesses.
Following the speculation surrounding mining companies like Compute North and Core Scientific, Argo Blockchain (Nasdaq: ARBK) has given investors an unsettling update concerning a $27 million financing deal that fell through.
“As previously disclosed, [Argo Blockchain] signed a non-binding LOI with a strategic investor to raise approximately £24 million($27 million) via a subscription for ordinary shares,” Argo’s filing details. [Argo Blockchain] no longer believes that this subscription will be consummated under the previously announced terms. Argo is continuing to explore other financing opportunities.”
Argo’s shares, ARBK, have plummeted during the last 24 hours, losing 14.86% against the U.S. dollar by 1:22 p.m. (ET). Then the financial institution Canaccord Genuity slashed the shares down to hold from buy, and Jefferies analysts’ Bolor Enkhbaatar and Jonathan Petersen downgraded the company’s shares to a hold as well. Petersen told clients that if Argo was able to reduce the miner’s debt it would bolster “significant flexibility in these volatile times.
At press time, ARBK shares are down to $0.95 and during the last six months, ARBK has lost 88.54% against the U.S. dollar. Year-to-date, the publicly-listed bitcoin miner Argo’s stock is down 92.74%. Argo has been actively selling off bitcoin (BTC) as it sold 887 BTC in July and 637 BTC in June 2022. In the October update, Argo further noted that it sold 3,843 new-in-box Bitmain S19J Pro machines for cash proceeds and to “further maximize liquidity.”