Bitcoin Miner Argo’s $27M Fundraise Falls Through; Shares Plunge

Bitcoin mining company Argo Blockchain’s (ARB) deal to raise $27 million from a strategic investor has fallen through, according to an update posted on the London Stock Exchange.

Earlier this month Argo signed a letter of intent (LOI) to sell 87 million shares to an investor as it looked to ease liquidity pressures.

“The company no longer believes that this subscription will be consummated under the previously announced terms,” the company said. “Argo is continuing to explore other financing opportunities.”

Argo did not reveal the reason why the deal collapsed.

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 (ARB) fell more than 60% to as low as 4 pence. They have lost more than 95% over the past year.

The miner did not immediately respond to CoinDesk’s request for comment.