Invezz published a report at the beginning of September stating that Argo's mining margin has dropped to 20% in the midst of the recent slump in cryptocurrency prices and increases in the cost of electricity.

It's possible that Argo Blockchain will have to call it quits.
Publicly-traded In its most recent update, Argo Blockchain stated that its previously announced finance arrangement is extremely unlikely to be finalized within the time frame that was envisioned at the beginning of October.

Argo disclosed on the 7th of October 2022 that it has signed a letter of intent with a strategic investor in the process of trying to fund £24 million ($27 million). A subscription agreement for the miner's ordinary shares would have been used to facilitate the funding. Argo now believes that the strategy will not work, and as a result, the company is looking into other potential sources of finance.

Argo has to get working capital that will allow it to make it through the next year.

Argo will be in for a difficult time in the near future if the plans to get fresh financial transactions are not successful. According to the latest information from Monday, the bitcoin miner would be required to scale up operations.

While Argo is looking into other possible sources of funding, there is no guarantee that any definitive agreements will be reached or that any transactions will be carried out. In the event that Argo is unable to secure any additional funding, the company will experience a negative cash flow in the near future and will be forced to either scale back its activities or shut them down entirely.

As the business looked to acquire more cash, the update also includes confirmation that 3,843 Bitmain S19J Pro mining machines were sold for approximately £4.8 million ($5.6 million). The sale will result in the cryptocurrency miner's total hashrate capacity remaining the same, which is 2.5 EH/s. This is contrary to what was originally anticipated.

The most recent news comes as prices for Argo shares have dropped significantly during the day on Monday, dropping by more than 45% at the time this article was written. The share price of the mining company is down by about 90 percent so far this year.

Following the announcement that the company will be experiencing a negative cash flow, shares of Argo Blockchain fell by 45%.