On December 12, Argo Blockchain, a large-scale cryptocurrency and smart contract mining service provider, officially announced that it “probably” does not have enough funds to continue operating its business in the near future. next month.

In the blog post, the company is said to be in preliminary negotiations with a third party to sell certain assets and enter into an agreement to finance equipment that will help its balance sheet and company's liquidity.

As TronWeekly recently reported, Compass Mining's Chief Content Officer, Will Foxley, tweeted a screenshot of Argo Blockchain on December 9 regarding the company's imminent bankruptcy on December 12.

However, two days ago, after accidentally leaking sensitive information about his bankruptcy, he officially stated that there was a possibility of such action:

The company hopes it will be able to complete the transaction outside of voluntarily filing for Chapter 11 bankruptcy in the United States, although there is no guarantee that it will be able to avoid such filing.

To analyze these strategic possibilities, they hired investment bankers Stifel GMP and its subsidiary Miller Buckfire Co., LLC, legal counsel McDermott Will Emery LLP and financial advisor Berkeley Research Group , LLC. The company also said that on December 9, trading of its securities on the London Stock Exchange and Nasdaq was suspended due to the inadvertent disclosure of information suggesting that the company was about to file for Chapter 11 bankruptcy. 11. "Shareholders should note that the company has not filed for bankruptcy at this time."

Argo Blockchain has financial problems
Previously, Argo had warned that it was in danger of shutting down due to lack of funding. 31, the crypto mining company is currently looking for new funding options after failing to secure significant funding from a key investor.

According to the press release:

The company signed a non-binding letter of intent with a strategic investor to raise approximately £24 million ($27 million) through a subscription to common shares. The Company no longer believes that this subscription will be consumed under the conditions previously announced. At this time, the company has also taken measures to protect liquidity and maximize liquidity further. For a cash profit of $5.6 million, the company sold 3,843 new and unopened Bitmain S19J Pro machines, totaling a hash power of 384 PH/s.

These units are Bitmain's last initial purchase, and the installation is scheduled for October 2022. As a result, the company's overall hash power remains at 2.5 PE/s. .

Due to a lack of capital, Argo has taken steps to protect its funds and maximize liquidity. Previously, the company actively sold its mined Bitcoin assets to reduce debt to crypto investment firm Galaxy Digital.

After selling 637 BTC in June 2022, Argo sold another 887 BTC in July. He then joined a large group of crypto miners that decided to sell their own BTC in the market. bear field in 2022.