Argo Blockchain stock dips on strategic actions to raise additional capital

Argo Blockchain (NASDAQ:ARBK) shares dipped 14% premarket on Friday after the cryptocurrency mining firm outlined several strategic actions to bring in additional capital to the business and strengthen its balance sheet.The company's profitability and free cash flow generation have reduced lately in the wake of falling bitcoin price and headwinds from the price of both natural gas and electricity.In addition to measures being undertaken to reduce costs and preserve capital, Argo (ARBK) is pursuing following strategic actions to endure the current period of market dislocation: signed a non-binding letter of intent with an affiliate of New York Digital Investment Group to amend existing equipment financing agreement; plans to sell 3,400 mining machines for cash proceeds of £6M; and intends to raise ~£24M via proposed subscription with a strategic investor.The amendment to equipment financing agreement will release ~£5M of restricted cash and significantly reduce the company's debt service payments.Argo Blockchain (ARBK) also signed a non-binding letter of intent with a strategic investor under which the investor has agreed to subscribe for ~87M ordinary shares for gross proceeds of ~£24M.These actions, together with cost reductions, will provide the company with sufficient working capital for its present requirements, that is for at least the next 12 months from the date of this announcement.