It’s been revealed that the Bitcoin Miner Argo fundraise fell through. Check out the latest reports about this below.
Argo’s fundraise fell through
Argo Blockchain’s (ARB) said a deal to raise 24 million British pounds ($27 million) from a strategic investor has fallen through. It’s important to note that this ended up sending the bitcoin mining company’s shares tumbling as much as 72%.
CoinDesk notes the fact that 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.
It’s also worth noting the fact that the BTC mining industry is at a critical moment as it battles soaring energy prices which are mixed with the stagnated value of cryptos.
Coinbase CEO on crypto adoption
Coinbase CEO Brian Armstrong has just addressed a timeline for global crypto adoption, saying that the industry is still in its very early days.
In a new episode of Coinbase’s Around the Block podcast, Armstrong says Bitcoin’s market capitalization is not yet big enough for BTC to act as a serious flight-to-safety asset. This is what some of its advocates have been predicting.
On the other hand, Armstrong said that Bitcoin would manage to fulfil the role of a “new gold” asset class within the next decade.
“in down macro environments, we see there’s a flight to safety. In the traditional economy, that was always gold, commodities, things like that.”