Argo Blockchain shares fall after £24m deal canceled

An attempt to sell £24 million worth of stock to a strategic investor ended unsuccessfully. According to a press release:

The company will look for other ways to get funding because of the impossibility of completing the deal on the initial terms.

Argo Blockchain sold 3,843 Antminer S19J Pro to increase liquidity, generating proceeds of £4.8 million. It resulted in failing plans to increase the hashrate to 2.9 EH/s. The figure remained at its previous level: 2.5 EH/s.

Earlier, representatives of the mining company stated that:

The lack of funding would result in negative cash flow and cause a reduction or even termination of operations.

After the deal didn’t go through, the company’s shares went down. At the moment of writing, the situation with the securities on the London Stock Exchange looks as follows.

Source: londonstockexchange.com

The peak value in February 2021 was £282.

In September, many mining companies reflected an unallocated loss in their balance sheets, although Arcane Research predicted continued financial stability. Argo Blockchain was an exception at the time, posting an undistributed profit of $26 million.