Argo Blockchain (NASDAQ:ARBK) (OTCQX:ARBKF) stock slid 16.8% out of the gates Tuesday, adding to the 44% swoon in the prior session, as analysts downgraded shares of the cryptocurrency miner due to a "perfect storm of headwinds."Recall on Monday when the miner said it no longer expects its planned fundraising to come to fruition, and as a result, it's exploring other financing opportunities. If the company can't land additional financing, it will become cash flow negative in the near term and would need to curtail or cease operations. In turn, Jefferies analyst Jonathan Peterson cut ARBK stock to Hold from Buy, while also citing near-term headwinds across the mining industry that are squeezing profitability, including depressed crypto prices, a rising network hashrate and higher electricity prices. "It seems unlikely that BTC (BTC-USD) will rally in the near term given its recent correlation with tech stocks and the broader uncertainty affecting the markets looking toward a potential recession next year," he wrote in a note to clients. Similarly, Canaccord analyst Joseph Vafi downgraded Argo (ARBK) to Hold from Buy on the basis of the miner's cash flow issue as well as broader industry headwinds. "While the company has focused on boosting its liquidity via the sale of miners, unless macro factors improve we see Argo as potentially a cash flow negative entity," he wrote in a note.The Hold ratings were in-line with the Quant's H...
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