Argo Blockchain, a Bitcoin mining company listed on both Wall Street and the London Stock Exchange, recently announced a private placement agreement with an institutional investor worth £6.5 million. The deal involves the issuance of 57,800,000 ordinary shares at £0.1125 per share on the LSE, as well as warrants to purchase an additional 57,800,000 shares at the same price. H.C. Wainwright & Co. is facilitating the transaction as the exclusive placement agent.
The placement price represents a premium to Argo’s recent trading averages and a 10% discount to the closing price on July 29. The company plans to utilize the net proceeds for working capital, general corporate purposes, and debt repayment. The placement shares are expected to be admitted to trading on the London Stock Exchange’s Main Market around July 31, 2024. Following the placement, Argo’s total issued share count will increase to 636,352,148, with the newly issued shares holding equal ranking to existing ordinary shares.
Argo Blockchain operates cryptocurrency mining facilities in Quebec and Texas, with a focus on sustainable practices powered by renewable energy. Recent financial reports from Argo have shown improving performance and strategic adjustments to navigate industry challenges. In its latest quarterly update, the company reported a revenue of $16.8 million, marking a 4% increase from the previous quarter and an impressive year-over-year growth of nearly 50%. Additionally, there was a substantial reduction in net loss, which decreased to $3.2 million.
Thomas Chippas, the Chief Executive Officer of Argo Blockchain, expressed optimism about the company’s future growth and development. He highlighted exiting the Bitcoin halving with over $12 million in cash, reducing Q1 debt by over $12 million, and streamlining Quebec operations through the sale of Mirabel. Looking back at the full-year results for 2023, Argo demonstrated resilience in a challenging market environment, achieving a modest gross profit and an 85% reduction in losses compared to the previous year.
On the Nasdaq, Argo’s shares (ARBK) reached the $2 level during a recent session, the highest in over three months, before settling back to $1.6. Meanwhile, on the LSE (ARB), the shares are trading around 11 pence after testing 13.5 pence on Monday. These movements come in the context of Argo’s efforts to enhance financial performance and navigate industry dynamics. With a focus on sustainable practices and growth opportunities, Argo Blockchain continues to position itself for success in the evolving cryptocurrency mining landscape.
Overall, the recent private placement agreement and positive financial indicators reflect Argo Blockchain’s commitment to financial health, operational efficiency, and strategic growth. As the company continues to navigate challenges and seize opportunities in the cryptocurrency mining sector, investors and stakeholders are likely to closely monitor its progress and performance. With a focus on innovation, sustainability, and value creation, Argo Blockchain remains a key player in the evolving digital asset ecosystem.
