Sell or close – The minor Londoner Argo Blockchain engages in a race for cash, as the crypto winter and rising electricity prices force some companies in the sector to go out of business.
Shares and miners: selling with a vengeance at Argo Blockchain
The time is not for dithering. Argo Blockchain comes from raise $27 million, against the issuance of 87 million shares to a single investor, who would now own about 15% of the company. The mining company Bitcoin (BTC) based in London also announced the sale of 3,400 miners Antminer S19 J Pro, for a total of $7 million.
Argo Blockchain CEO, Peter Wallwho explained the steps the company has taken to bail out its cash, refers to a squeeze in the company’s profitability ” on both sides “, referring to the rise in the price of energy on the one hand, and to a fall in Bitcoin (BTC) price on the other hand.
Argo Blockchain does not hesitate to take aggressive measures that dilute the value of the shares of the company and decrease its hashing power, in the face of ” a shortage of cash “, in the words of Peter Wall.
If all these transactions are indeed concluded, the CEO of the company believes that the funds from these sales of shares and miners should allow Argo Blockchain to hold over the next twelve months.
The London miner seems to have a good chance for the moment.escape a bankruptcy filingunlike Compute Northwhich recently had to file for bankruptcy, with a debt that reached 500 million dollars, owed to at least 200 creditors.
Bitcoin miners are in the list of major victims of bear markets. While times are tough for companies like Compute North or Argo Blockchain, Grayscale has found a way to take advantage of these difficulties and jumps on the mining.
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