Argo Blockchain Successfully Raises $7.5 Million Via Share Offering

Argo Blockchain (ARB) has raised 5.7 million British pounds ($7.5 million) by issuing additional shares. The London-based cryptocurrency mining firm offered new shares to raise funds.

The blockchain company offered 51,340,000 new ordinary shares to institutional investors, each priced at 10 pence. However, they received around £5.13 million ($6.64 million). According to a London Stock Exchange announcement, the crypto miner raised £616,000 ($797,000) from retail investors. These investors purchased 6,160,000 new shares at the same price.

These funds will be utilized to pay Argo’s financial debts. Before the sale, Argo revealed that the company had outstanding debt of £59.1 million ($76,380,840). Notably, the number of shares sold represents approximately 12% of the platform’s total value before the sale.

The selling price was 10 pence per share, a discount of about 14% compared to Argo stock’s average price over the past 30 days (VWAP). According to a previous announcement, Argo aimed to raise £4.78 million ($6.18 million) by selling a minimum of 47,750,000 new ordinary shares.

Argo Blockchain Faced Huge Loss

In April, Argo Blockchain reported a full-year net loss of £194.2. However, this is comparatively very higher than last year’s net income of £30.8 million. This sharp difference indicates its challenges to maintain profitability amid a volatile cryptocurrency market. In particular, the significant decline in the value of Bitcoin (BTC) last year affected Argos’ financial performance.

However, Argo managed to avoid financial collapse by negotiating with Galaxy Digital last year. The company sold its Helios mining business located in Dickens County, Texas, for £54 million ($65 million). This smart decision helped Argo stand out from its industry competitors, as many faced financial challenges.

In addition, the company also secured a $35 million loan from Galaxy Digital. Argo used its mining equipment as collateral for the loan. By successfully selling more shares and raising capital, Argo will significantly improve its financial situation.

However, the funds will repay the company’s debt and support its highly competitive mining industry operations. Additionally, the company’s capability to raise funds through private and public offerings demonstrates that investors have a positive outlook on Argo’s future opportunities. Argo Blockchain focuses on being innovative and forming strategic partnerships. It aims to improve its operations and exploit new opportunities in the changing cryptocurrency market.