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London’s Argo blockchain secures £5.7 million in funding for expansion

Crypto Miner Argo Blockchain Raises $7.5M in Share Sale

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  • Funds will be used to settle outstanding financial obligations and support expansion.
  • The shares were sold at a discount, representing 12% of the company’s market value.
  • Argo Blockchain faced challenges due to cryptocurrency market volatility and incurred a significant net loss.

London-based cryptocurrency mining company, Argo Blockchain (ARB), has successfully raised £5.7 million ($7.5 million) by issuing additional shares. The company, listed on the London Stock Exchange, recently announced its decision to sell shares to raise funds.

The public auction yielded £616,000, while the private offering brought a substantial £5.134 million. These funds will be utilized to settle Argo’s outstanding financial obligations. Before the acquisition, Argo had disclosed an outstanding debt level of £59.1 million.

The shares were priced at 10 pence each, representing a discount of approximately 14% compared to the 30-day volume weighted average price (VWAP) of Argo stock. The number of shares sold accounts for roughly 12% of the company’s market value before the sale. Calculated using the volume of shares traded over the past 30 days, the VWAP of Argo stock serves as a benchmark for determining the discount.

Argo Blockchain‘s full-year net loss of £194.2 million in April, compared to the previous year’s net income of £30.8 million, highlights the challenges mining firms face in maintaining profitability amidst the cryptocurrency market’s volatility. The sharp drop in the value of bitcoin (BTC) over the past 12 months significantly impacted Argo’s financial performance.

However, Argo avoided insolvency by negotiating with Galaxy Digital to sell its Helios mining business in Dickens County, Texas, for $65 million. This strategic move distinguished Argo from its industry rivals, many of whom faced financial difficulties. Additionally, the company secured a $35 million loan from a financial services firm owned by Michael Novogratz, which used Argo’s mining gear as collateral.

Successfully issuing additional shares and raising capital will significantly improve Argo’s financial position. These funds will help settle the outstanding debt and support the company’s operations in an increasingly competitive mining landscape.

Argo Blockchain remains committed to navigating the challenges posed by cryptocurrency market volatility while pursuing sustainable profitability and long-term growth opportunities. With its strengthened financial position, Argo aims to solidify its position as a leading player in the cryptocurrency mining industry.

Moreover, the company’s ability to raise funds through public and private offerings reflects investor confidence in Argo’s prospects. The discounted share price offered during the sale presented an attractive opportunity for investors to participate in the company’s growth.

Argo Blockchain prioritizes innovation and strategic partnerships, driving its commitment to enhancing operational efficiency and capitalizing on emerging opportunities in the dynamic cryptocurrency market.

Argo Blockchain’s successful fundraising efforts have positioned the company for future growth and stability. By addressing its financial obligations, securing strategic partnerships, and capitalizing on its mining expertise, Argo aims to overcome the challenges that have impacted the profitability of mining firms in recent years.

With a strengthened financial foundation and a focus on sustainability, Argo Blockchain is poised to navigate the ever-evolving cryptocurrency landscape and drive its success in the industry.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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