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