Argo Blockchain announced that rising operating costs, falling prices for crypto assets and increasing mining difficulty have reduced revenue and net profit.
To replenish working capital, the company will sell 87 million shares to an unnamed investor, raising $27 million to hold out until the end of next year. The parties plan to complete the deal by the end of November.
Argo Blockchain also expects to raise about another $6 million from the sale of 12% of its mining equipment to third parties. This will reduce the company’s mining capacity to around 2.9 EH/s.
In addition, Argo has entered into a debt restructuring agreement that releases approximately $5.7 million in collateral and reschedules the company’s existing loans.
“We are convinced that these steps will enable Argo to better navigate current market conditions and maintain market value for shareholders,” said CEO Peter Wall.
The head of Argo Blockchain drew the attention of shareholders that temporary difficulties will not affect the company’s plans to expand business and continue building an 800 MW data center in Texas.
Source: Bits
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