Coin-Miners - Crypto Currency Tracker logo Coin-Miners - Crypto Currency Tracker logo

Seeking Alpha 2022-10-07 09:56:24

Argo Blockchain stock dips on strategic actions to raise additional capital

Argo Blockchain (NASDAQ:ARBK) shares dipped 14% premarket on Friday after the cryptocurrency mining firm outlined several strategic actions to bring in additional capital to the business and strengthen its balance sheet.The company's profitability and free cash flow generation have reduced lately in the wake of falling bitcoin price and headwinds from the price of both natural gas and electricity.In addition to measures being undertaken to reduce costs and preserve capital, Argo (ARBK) is pursuing following strategic actions to endure the current period of market dislocation: signed a non-binding letter of intent with an affiliate of New York Digital Investment Group to amend existing equipment financing agreement; plans to sell 3,400 mining machines for cash proceeds of £6M; and intends to raise ~£24M via proposed subscription with a strategic investor.The amendment to equipment financing agreement will release ~£5M of restricted cash and significantly reduce the company's debt service payments.Argo Blockchain (ARBK) also signed a non-binding letter of intent with a strategic investor under which the investor has agreed to subscribe for ~87M ordinary shares for gross proceeds of ~£24M.These actions, together with cost reductions, will provide the company with sufficient working capital for its present requirements, that is for at least the next 12 months from the date of this announcement.

freebitcoin
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.