Argo Blockchain – a top crypto mining firm in London – has raised more than $27 million. The company garnered the funds after agreeing to sell about 87 million stock shares to a single investor.
Argo Blockchain Makes a Lot of Cash
The move is interesting, to say the least. During a time when most crypto mining companies aren’t doing so well – with the price of bitcoin falling so drastically, for example, it’s been said that the costs of mining crypto outdo the rewards one can get – Argo has arguably gotten its hands on quite a bit of money very quickly.
The situation raises a lot of questions, such as, “Who is the investor at hand? What does he or she do for a living, and what would make that person so interested in holding shares in an industry that appears to be traveling through the doldrums as of late?”
CEO Of Argo Peter Wall initially made the announcement regarding the sale on YouTube. He mentioned that the company is taking several steps to improve its liquidity position as the crypto bear market continues to expand and take hold, and the company wants to ensure it has funds in place to keep its operations going at full speed.
Wall mentioned:
Our profitability has been squeezed from both sides from higher energy prices to [the] lower bitcoin price. That resulted in a cash crunch for Argo.
Aside from selling stock shares, the company has also agreed to the sale of more than 3,400 Antminer machines. Again, the buyer in question is not being named at the time of writing. They are merely listed as a “third party,” and the machines were sold for a record $7 million. By selling the machines, Argo is expected to contribute to a dip in bitcoin’s overall hash rate.
Wall further stated:
Assuming all the transactions close, we’re confident we have the liquidity and balance sheet to get us through the next 12 months.
Despite all the news, Argo Blockchain shares were down roughly 15 percent on the London Stock Exchange at the time this article was composed.
So Many Others Haven’t Been Lucky
We have crossed into a time where crypto companies are failing miserably. Whether they’re hedge funds or mining firms, many businesses situated within the digital currency space appear to be suffering like they never have before. At a time when Argo appears to be doing quite well, other mining firms – such as Compute North – are filing for bankruptcy or having to let employees go.
There are also several arguments swirling about the safety of bitcoin mining. While the process doesn’t appear to pose any threat to humans, some environmentalists believe that crypto mining will put the planet in harm’s way. Several reports have been written that crypto mining requires more energy than many developing nations.
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