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Bitcoin mining giant Argo Blockchain said in a press release on Monday it has failed to raise $27 million from a strategic shareholder, sending its shares losing over 56%.
The London-headquartered company wrote in an open statement to shareholders that it will now explore new options for funding. If Argo fails to find any further financing, it would become "cash flow negative" in the near term and would need to "curtail or cease operations," the company noted.
Argo Blockchain added it has already sold 3,843 new Bitmain S19J Pro machines for $5.6 million to boost cash liquidity. Despite the sale, Argo's total hashrate capacity remains at 2.5 EH/s, the company highlighted.
The news comes shortly after Core Scientific, one of the biggest bitcoin (EXANTE: Bitcoin) mining players in the crypto market, also notified the US Securities and Exchange Commission (SEC) it might run out of cash by the end of the year.
The company said that its operating performance and liquidity have been damaged not only by the crypto winter, but also due to a rise in electricity costs and increased competition. Core Scientific also added the ongoing litigation with bankrupt Celsius Networks had also affected the company's business.
