Mining Firm Argo Blockchain Plans to Attract £24M for Working Capital
British mining company Argo Blockchain intends to raise £24 million through the purchase of 87 million ordinary shares by an unnamed strategic investor.
According to the statement, the company has recently faced a decline in profitability and cash flow due to adverse market conditions. The firm has decided to take a number of measures to replenish working capital.
Argo CEO Peter Wall has commented:
“Our profitability has been hit in two ways: by higher energy prices and lower bitcoin quotes, which has led to a shortage of cash.”
Regarding the purchase of shares, the parties have signed a non-binding agreement. If the transaction is completed, the investor’s stake in Argo will be 15.46% and will receive two seats on the seven-member board of directors.
