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The popular crypto mining leader in the world, Agro Blockchain, has decided to raise the funds up to $27 million (USD) after the company decided to invest its 87 million shares with an unknown investor. And it decided to sell its mining machines to raise the market capital, which has been affected recently.
The Chief Executive of the company stated that “We are convinced that taking these steps will improve the position of the company to navigate the current market conditions and preserve shareholder value.”
Agro blockchain, based in London, stated that the measurement taken will help to increase working capital in the coming months. It decided to sell its 87 million shares to an investor at a rate of 27.6 pence. It will help to raise the market capital to 24 million euros in the next six months. In the next month, it is going to announce the name of the investor and finalize the deal with a certain investor.
“Assuming all of the transactions close, we are confident that we have the liquidity and balance sheet to get us through the next 12 months,” he added.
The company noticed that during the conflict between Ukraine and Russia, the price of natural gas and electricity continuously increased in the nation, and the low availability of natural gas in the United States also affected the mining conditions in the country. It resulted in a decline in the price of Bitcoin and the company has been facing huge losses since May. Agro’s total mining capacity was 220 megawatts, which was performed by the company.
The Agro Blockchain took the following steps to raise its capital market by
- Selling the mining machines of the company.
- Amending the existing financial agreements.
- Certain conditions for the subscription of ordinary shares.
Not only that, Bitcoin miner Agro blockchain decided to sell its 12% of mining machines to the dealers, which helped to raise the company’s market value up to six million euros. But it results in a decline of the company’s mining capacity to nearly 2.9 EH/s.
Furthermore, he added that “The sale of the 3,400 Bitmain machines generates cash in the near term, and the subscription with a major strategic investor strengthens the balance sheet while adding significant expertise in Bitcoin mining and digital asset management to the Board.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
