On December 9 (yesterday), Worlds leading crypto mining company, Argo blockchain stocks suspended in UK and Us. Although no specific explanation for the suspension was given, it might signify upcoming modifications or changes to the company.
In its November operating update, Argo Blockchain published yesterday. A statement confirming its continued participation in funding discussions to provide the business with working cash sufficient for its present requirements. It also said that a follow-up announcement would be made when appropriate.
Due to budgetary restrictions, Argo Blockchain revealed many strategic moves in October. It included generating $6.8 million in cash by selling 3,400 mining equipment units.
Argo Blockchain sold 3,843 Antminer S19J Pros for $5.6 million to generate short-term liquidity. As a result of the bad news, its stock’s performance suffered; in October, its price dropped from 36 to 7.5 pence. The stock market has mainly resisted further declines since that time. The price of ARBK as of right now is 6.70 pence.
The mining company made public the failure of its attempt to raise $27 million from a strategic investor in October. According to the statement, if Argo Blockchain cannot get more finance. It will soon experience negative cash flow and have to scale back or stop operations.
The mining sector is at a turning point in the face of growing energy costs and a flat cryptocurrency market value. In a previous warning, Core Scientific stated that it might have to halt operations for the upcoming year due to financial instability.
The Mining Industry’s Constant Problems
The mining firm experienced a loss of $434.8 million in the 3rd quarter of 2022, with at least 200 creditors and $500 million in debt. The cryptocurrency mining data center Compute North filed for bankruptcy in September.
Related Reading | Binance’s CEO Tried To Stop Sam Bankman-Fried From Toppling The Entire Crypto Industry
According to its November report, it mined 198 Bitcoin throughout the month, less than the 204 drilled in October. Revenues dropped from $4.0 million in the prior month to $3.46 million this month.