Bitcoin (BTC) Mining firm Argo Blockchain (ARBK) said in its filing with the London Stock Exchange on Monday that it is in advanced talks to sell some of its assets and enter into an equipment financing transaction to strengthen its balance sheet and increase its liquidity.
Bitcoin Mining Company Argo: “We Are Hopeful We Can Proceed Without Bankruptcy”
The London-based company said it was hopeful it could make these moves without filing for a voluntary Chapter 11 bankruptcy in the US, but said there was no assurance it could do so.
Argo also noted that draft materials about the company’s filing for bankruptcy were mistakenly posted on its website last week, which led to the suspension of stock trading in both the UK and the US on Friday.
The company is now requesting that its UK listing be reinstated and expects this to happen “as soon as possible”. The miners’ shares had lost about 94% of their value over the past year and underperformed the rest of the industry.
Argo has been trying to raise $25 million to $35 million since late August. In November, it became clear that he needed this funding to survive. After a $27 million deal failed in October, the firm warned that cash flow could soon turn negative.
Argo had built a mega Bitcoin mining facility called Helios in Texas. The facility started operations in May with a plan to reach 800 megawatts (MW) of energy consumption and 20 exahash/second (EH/s) processing power. This would make Argo one of the largest miners in the world.
However, problems quickly surfaced and the firm saw the plant’s costs exceed its revenues, so much so that margins narrowed over the next few months.
*Not investment advice.
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