Shares of Argo Blockchain (NASDAQ: ARBK) tanked in pre-market trading on Monday after concerns were raised over the cryptocurrency mining company’s liquidity.
The company had earlier signed a non-binding Letter Of Intent (LOI) with a strategic investor to raise around $27 million through a subscription for ordinary shares. However, Argo “no longer believes that this subscription will be consummated under the previously announced terms. Argo is continuing to explore other financing opportunities.”
In a bid to preserve cash and maximize liquidity, Argo sold 3,843 new-in-box Bitmain S19J Pro machines, representing ~384 PH/s of total hashrate capacity, for cash proceeds of approximately $5.6 million. As a result of this sale, Argo’s total hashrate capacity remains at 2.5 EH/s.