Argo Blockchain's (ARB) said a deal to raise 24 million British pounds (US$27 million) from a strategic investor has fallen through, sending the bitcoin mining company's shares tumbling as much as 72%.
The London-based firm, which earlier this month signed a letter of intent to sell 87 million shares to the investor as it looked to ease liquidity pressures, didn't say why the agreement had been called off. It is working to secure other deals to provide working capital for the next 12 months.
"Should Argo be unsuccessful in completing any further financing, Argo would become cash flow negative in the near term and would need to curtail or cease operations," it said in a statement to the London Stock Exchange.
The bitcoin mining industry is at a critical moment as it battles soaring energy prices coupled with the stagnated value of cryptocurrencies. Last week, Core Scientific (CORZ) warned investors that it may have to consider bankruptcy, while in September crypto mining data center Compute North filed for Chapter 11 bankruptcy after it emerged that it owed $500 million to at least 200 creditors.
Argo shares fell to as low as 4.25 pence and were recently trading about 7 pence. They have lost some 92% this year.
In an attempt to secure short-term liquidity, Argo sold 3,843 Antminer S19J Pros for $5.6 million. It had previously intended to sell 3,400 miners for $7 million.
The miner did not immediately respond to CoinDesk's request for comment.
UPDATE (Oct. 31 09:15 UTC): Adds share performance to first paragraph, sale of mining equipment.