Daily Crypto News

Why Bitcoin- And Ethereum-Related Stock Argo Blockchain Is Getting Hammered Today – Argo

Argo Blockchain PLC – ADR ARBK shares are trading lower by 22.30% to $3.24 Friday morning after the company announced strategic actions to strengthen its balance sheet.

What Happened?

Among the strategic actions Argo announced:

  • Argo signs LOI to amend existing equipment financing agreement
  • Argo plans to sell 3,400 mining machines for cash proceeds of £6.0 million ($6.8m)
  • Argo intends to raise approximately £24 million ($27m) via Proposed Subscription with a strategic investor

As previously reported on September 9, Argo Blockchain says the company has seen headwinds from the price of both natural gas and electricity caused by the geopolitical situation in Europe and low levels of natural gas storage in the United States.

These factors, coupled with the decline in the price of Bitcoin since March 2022 and the increased mining difficulty, have reduced the company’s profitability and free cash flow generation.

Argo Blockchain says the company has been proactive in curtailing operations at its flagship Helios facility in Dickens County, Texas, during periods of high power prices and securing a more favourable short term power purchase agreement with a new electricity provider.

Argo Blockchain says the company remains optimistic about securing a long term, low-collateral, fixed price PPA and is continually reviewing its other expenditures to identify and take additional steps to manage the company’s costs.

See Also: Why Cannabis Stocks Are Popping Off Today

According to data from Benzinga Pro, Argo Blockchain has a 52-week high of $21.00 and a 52-week low of $3.04.

Read More: Why Bitcoin- And Ethereum-Related Stock Argo Blockchain Is Getting Hammered Today – Argo

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.