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Bitcoin Mining Giant Argo Blockchain Gets Negative Cash Flows And Stock Price Dips

Though the crypto winter seems to be over, its impact on Bitcoin and the crypto market still lingers. Several crypto-related firms have gone down the drain over the pressure in the market. Some are still battling to stay afloat despite the forces’ influence while managing their operations.

Most companies related to Bitcoin mining are getting more heat from the fluctuating market trend. Most Bitcoin miners have shut down businesses, but some filed for bankruptcy as they couldn’t weather the storm.

Argo Blockchain is reportedly facing a negative cash flow, with the value of its shares declining. The pressure is getting more intense for the crypto mining giant in financing its continuous operation. More failures in such financing quests could lead to a halt in its process or a drastic cash drop in the future.

Bitcoin Mining Giant Argo Blockchain With No Adequate Sources To Fight Insolvency

The BTC miner released a press statement disclosing its previous financial plans. It noted how the firm has been exploring diverse economic opportunities. However, it has no concrete assurance in signing such agreements or completing fruitful transactions.

It revealed that the company needs to consummate financial activities offering enough working capital for its operational requirements. Such economic growth is necessary for its sustainability in the next twelve months from today to avoid becoming bankrupt.

According to the press, the firm had a partnership plan with an investor to generate $27 million through shares subscription. However, the attempt came out unsuccessful.

Also, Argo Blockchain reported the sales of some of its mining equipment to preserve cash and enhance its liquidity. For example, it recorded selling about 3,843 brand-new Bitman S19J Pro machines in the firm’s last batch of inventory scheduled for October.

Argo Blockchain Stock Plummets

Following the recent downward financial stance, Argo’s shares performance has plummeted. The data indicated a decline of almost 50% over the past 24 hours. Also, the stocks report from the beginning of the year shows a dip of over 80%.

The struggle by Argo has been going on for some time now. Finally, the Bitcoin mining firm got a $25 million BTC-backed loan from Galaxy Digital, an investment management company, in September 2021. The loan targets to support the miner’s cash flow requirements and expansion plans in West Texas.

Argo has been selling its BTC, holding monthly throughout 2022. This move is the necessary option to cut down its part of the agreement and increase its balance sheet. In June this year, the firm sold about 637 Bitcoin at $24,500 per token.

Bitcoin Mining Giant Argo Blockchain Gets Negative Cash Flows And Stock Price Dips

Bitcoin candle blows in red zone l BTCUSDT on Tradingview.com

However, it seems to sell more Bitcoin tokens than it has produced. In June, the company mined about 179 BTC but sold 637 BTC coins.

featured Image From Pexels, Charts From Tradingview

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Billionaire Mike Novogratz Says Bitcoin At $30,000 Is Unlikely

Bitcoin price has been a topic of debate since the digital asset first made its entry into the mainstream over a decade ago. With its continued growth, a lot of people have come forward to proffer their predictions for the price of the cryptocurrency both in the long and the short term. One of those is billionaire Mike Novogratz. However, despite being usually bullish on the price of bitcoin, Novogratz does not seem to expect much in the short term.

Bitcoin Unlikely To Reach $30,000

Currently, the price of bitcoin is bouncing between the $23,000 and $24,000 level. This has seen a lot of speculation as regards what will happen when the digital asset is able to break out of this rut finally. For many, the recent recovery has led them to believe that there will definitely be a run-up back to $30,000, where the price had fallen from. However, not everyone seems to share this bullish short-term sentiment, and Novogratz is one of those.

The CEO of Galaxy Digital has been one of the many proponents of bitcoin, investing in the asset both on a personal and professional level. However, with bitcoin’s current trend, Novogratz does not expect a recovery. Mainly, he does not expect the asset to see $30,000.

BTC trending above $23,000 | Source: BTCUSD on TradingView.com

Novogratz explained during an interview with Bloomberg that he fully expected the price of the digital asset to continue to trend between $20,000 to $22,000, not believing that a break above $30,000 is possible with the recent run-up. “I’d quite frankly be happy if we’re in a $20,000 – $22,000 or $20,000 – $30,000 range for a while, with the next move breaking up,” he added.

Factors Dragging Down Bitcoin

There are a number of things that affects the cryptocurrency market and, by extension, the price of bitcoin. Recently, the news of the United States going into a recession has been the catalyst for the recovery trend, but Novogratz believes that the performance of bitcoin continues to be greatly tied to decisions by the government.

The Fed had once again increased interest rates which had affected the financial markets. With the current situation, any decision from the Fed has an impact on the digital asset due to its close correlation with the macro markets at the moment. But Novogratz believes that the Fed will stop raising rates, which is expected to have a positive impact on financial markets.

Despite not believing that the price of Bitcoin cannot touch $30,000 during this run-up, it has not changed the billionaire’s stance on bitcoin. He has previously stated that the price of the digital asset will grow to $500,000. His company also remains committed to its bitcoin strategy, holding a total of 16,402 BTC, making it the public company with the third-largest bitcoin holding in the world.

Featured image from CryptoPotato, chart from TradingView.com

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Don’t Expect A Bitcoin Recovery Anytime Soon, Galaxy Digital CEO

Billionaire Mike Novogratz has warned investors to not expect much of a recovery in bitcoin anytime soon. Novogratz who serves as the CEO of the digital asset merchant bank Galaxy Digital has always been a big proponent of Bitcoin and its advantages. However, he has recently shared his thoughts on the current market climate and what investors should be expecting in the coming days.

Confidence Will Take A While

The recent market crash has seriously impacted investor faith in the cryptocurrency market. As such, sell-offs across digital assets such as bitcoin have been rampant. Sentiment has also suffered greatly during this time and has led to low momentum in the market. This is not changing anytime soon.

Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?

Speaking with Bloomberg, the Galaxy Digital CEO explained that it will take a while for bitcoin to recover to previous levels. He chalks this up to the confidence level of investors when it comes to putting money into crypto, which he says will take a while for that confidence to return.

Bears take hold of BTC | Source: BTCUSD on TradingView.com

Novogratz also speaks to the current economic climate. One thing that has rocked various financial markets has been the hiking of rates by the Fed, the most recent hike happening on Wednesday. He notes that the Fed would have to let up on hiking interest rates at some point and once it does, more money from global macro hedge funds will flow into the market. At this point, Novogratz admits that Galaxy Digital will add more bitcoin to its holdings.

Bitcoin On The Charts

The price of bitcoin continues to fluctuate heavily between the $20,000 and $21,000 levels. This shows that while there is mounting resistance at the $22,000 point, there is also good support building up in the low $20,000s.

The short-term prognosis for the digital asset does not look good though. However, there are still some indicators that point to some recovery in the market. One of these is the cycle low before every bitcoin halving.

Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story

Usually, the bottom is reached at around 520 days, give or take a few weeks, before the next bitcoin halving. This has been the case for the last two halvings. If the digital asset follows this trend, then the bottom will be reached sometime in the last quarter of the year. Even though this points to some recovery in the short term, it also means that the current lows may not be the end of the decline if the bottom is expected to come in in Q4.

Bitcoin is trading at $20,902 at the time of this writing.

Featured image from Watcher Guru, chart from TradingView.com

Disclaimer: The following op-ed represents the views of the author, and may not necessarily reflect the views of Bitcoinist. Bitcoinist is an advocate of creative and financial freedom alike.

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When Bitcoin At $500,000? Novogratz Says Five Years

Bitcoin is still trading above $40,000. A long way from where it’s coming from, also a long way from where it’s expected to go. A lot of prominent figures in the space continue to make their predictions for the leading cryptocurrencies public with quite optimistic forecasts. The latest in this line of predictions is Galaxy Digital CEO Mike Novogratz, who has put the digital asset at a $500,000 value.

Bitcoin In Five Years

In a recent interview with Bloomberg Technology, Mike Novogratz shared some interesting thoughts around bitcoin and other cryptocurrencies. It is no secret that the Galaxy Digital CEO is an ardent supporter of the digital asset which he has been vocal about in the past. This is why his predictions for the cryptocurrency come as no shock given his previous bullish stance.

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Novogratz told Bloomberg Technology that he expected to see the digital asset hit as high as $500,000 in the coming years. Putting it on a closer time frame, the CEO explained that he expects to see this happen within the next five years.

He explained that more people are going to begin moving to the digital asset to get away from the dollar a bit. “The whole world is not going to flip to bitcoin overnight but you’re going to see more and more people say ‘I want to have some of my money outside of the sovereign.’”

Most Cryptocurrencies Will Die Out

Novogratz also touched on the controversies that surround bitcoin and the crypto market at large where people believe that it can be used to circumvent government sanctions. Speaking in relation to the current Russian-Ukraine crisis, he explains that “there is zero chance that the Russian government can use cryptocurrencies to circumvent.”

BTC breaks $41K | Source: BTCUSD on TradingView.com

The CEO explains that the regulations that govern crypto exchanges through which most cryptocurrencies move would not allow this since most require KYC verification to use. Coupled with the fact that bitcoin is a public blockchain, it makes it an ineffective way of actually using it to circumvent government sanctions.

Related Reading | Small Cap Altcoins In The Green In Pre-Spring Crypto Surge

As for the thousands of cryptocurrencies in the market, Novogratz does not see the majority of them going anywhere. He explained that a good chunk of this, about 75%, would die out due to ongoing regulations targeted at the space.

Galaxy Digital Holdings is the public company with the fourth-largest BTC holdings in the world. The company holds more than 16,400 bitcoins valued at over $670 million.

Featured image from Institutional Investor, chart from TradingView.com

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Galaxy Digital CEO Mike Novogratz Says Bitcoin Has Hit The Bottom

Bitcoin has been on a downward streak since the last quarter of 2021, and this has spilled into the new year. As January goes into full bloom, it has come with discouraging movements for investors as over $500 billion has been wiped off the market. This has sent bitcoin’s price down to the dreaded $40,000 price range.

One question that remains in the mind of investors is, has the market seen the bitcoin bottom? Billionaire Mike Novogratz attempts to answer this as he puts forwards his thoughts on the issue and predicts the bitcoin bottom.

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Bitcoin Should Bottom Out Between $38,000 to $40,000

Galaxy Digital CEO Mike Novogratz has always been an active voice in the crypto space and has at various times given his thoughts on the market. This time around, Novogratz sat down with CNBC’s Squawk Box, where he predicted where the bottom of the current bitcoin downtrend will be.

The billionaire CEO placed the floor of the current downtrend at $38,000 which he does not see bitcoin going under. Currently, bitcoin’s lowest during the dips have been $40,680, from which the digital asset has since recovered. But if Novogratz’s predictions are anything to go by, then the market may see another dip before there is a full-blown recovery trend.

BTC price tumbles down to $41,475 | Source: BTCUSD on TradingView.com

The CEO gives his reason for this bottom as institutional investors taking advantage of the low prices to get into the digital asset. I” know big institutions who are going through their process to put positions on. They’re going to see those as attractive levels to buy,”  Novogratz said.

“On the charts, $38,000, $40,000 feels like where we should bottom,” he added.

Inflation Will Drive Growth

Continuing on, Novogratz shares more regarding his stance on this predicted bitcoin bottom. One of those has been inflation.

Those who have been following the markets know that rising inflation rates have led to increasing concerns among investors who have begun to look for alternatives to gold to serve as an inflation hedge. Bitcoin has naturally become the option for these investors.

The Fed believes that inflation rates will begin to come down, but the CEO explained that if this does not go as planned, then “all bets are off.”

Related Reading | Melania Trump Congratulates Bitcoin On 13th Anniversary Of Bitcoin Genesis Block

Digital Galaxy, on which Novogratz heads as CEO, has made a name for itself in the space as being a big bitcoin proponent. The company currently holds over 12,000 bitcoins, making it one of the companies with the largest bitcoin holdings in the world.

Mike Novogratz himself also has a personal stake in cryptocurrencies, revealing that he holds about 85% of his net worth in cryptocurrencies, which at the time translated to up to $4.8 billion held by the billionaire in crypto.

Featured image from Stock Hax, chart from TradingView.com

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Galaxy Digital CEO Explains Why Ethereum Is Outperforming Bitcoin

Bitcoin’s utility as an inflation hedge has been a big push for the adoption of the cryptocurrency by investors. Ethereum on the other hand is fast-rising to become the preferred crypto for hedging against inflation for investors. The digital asset’s performance over the past couple of years has proven that it is a strong contender for bitcoin given the year-over-year returns recorded.

Only five years old, Ethereum has grown to become one of the largest assets in the world. It was recently named as the 15th largest asset in the globe, ahead of all of the big banks. Further adoption of Ethereum going forward is inevitable and Galaxy Digital CEO Mike Novogratz has commented on why Ethereum continues to outperform pioneer cryptocurrency Bitcoin.

Related Reading | Goldman Sachs CEO Sidesteps Bitcoin Inquiries, Says Blockchain Is More Important

Ethereum Is A Technology Play

Novogratz attributed the growth of Ethereum to the technology which is an attractive point for investors. Ethereum has proven to be one of the cryptocurrencies with the most use cases, especially with the advent of the decentralized finance (DeFi) space. Sitting down with CNBC for an interview on Wednesday, the CEO pointed out that Ethereum’s offering is larger than an inflation play.

In contrast to this, bitcoin’s biggest offering still hinges on its being an inflation bet. The digital asset which has a supply cap of 21 million coins has always attracted investors due to its deflationary nature. However, Novogratz pointed out that bitcoin starts to lose its appeal when it is being pitted against a devalued currency like the dollar.

Related Reading | Why Closing Out The Year Below $50,000 Could Be Bad For Bitcoin

Ethereum combats the problem of being just an inflation bet by providing innovative tech in the blockchain industry. “People see Ethereum as a technology bet,” Novogratz noted.

Since investors are betting on the tech rather than its use as an inflation hedge, it serves a better long-term purpose compared to bitcoin. This has helped it steal market share from the top cryptocurrency and continues to do so.

Technology Trumps Inflation

An increasingly pressing issue for investors has been the rate at which the Fed has been pumping money into the economy. Experts have called for a stop to the incessant money printing, which is driving inflation rates through the roof but the pleas and warnings have fallen on deaf ears. So, investors have had to turn to crypto investments that have proven themselves to properly hedge inflation, such as bitcoin.

ETH getting ready to test $4,000 | Source: ETHUSD on TradingView.com

Bitcoin bull and crypto supporter Mike Novogratz sees all of the money printing working out in the favor of cryptocurrencies in what he calls a “monster fourth quarter”. He however did not limit this expected bull market to crypto alone. Novogratz also expects to see the stock market continue its rally.

Featured image from FT.com, chart from TradingView.com