Argo Blockchain has successfully raised £4.2m through the issuance of new shares.
- The funds will aid in the relocation or sale of U.S.-based mining equipment.
- Argo aims to diversify into high-performance computing to boost revenue streams.
- Company shares have seen a dramatic shift since their 2018 IPO.
- Argo is addressing financial challenges following a turbulent period in the crypto market.
Argo Blockchain, a prominent Bitcoin mining firm listed on the London Stock Exchange, has raised £4.2 million through the sale of new shares to an undisclosed institutional investor. This strategic move involves the issuance of 76.9 million ordinary shares priced at 5.5 pence each. The capital raised is earmarked for the relocation or potential sale of its Bitcoin mining equipment currently housed at the Helios facility in Texas. The company intends to maintain its mining operations in Quebec while exploring new revenue avenues through ventures into high-performance computing.
The chief executive of Argo Blockchain, Thomas Chippas, emphasised that this financial influx strengthens the company’s balance sheet. He remarked that this development brings Argo closer to capitalising on the high-performance computing opportunity at Baie-Comeau and facilitates the movement of the Helios fleet, aligning with the objectives outlined in Argo’s Q3 2024 Results Announcement.
Listed on the London Stock Exchange since its Initial Public Offering (IPO) in 2018, Argo’s shares originally debuted at 12.5 pence. The company experienced a significant surge in share value, reaching a peak of 282 pence during the 2021 crypto boom. However, this surge was followed by a drastic decline during the ‘crypto winter’ of 2022, which markedly reduced the valuation of the cryptoasset market.
In 2023, Argo faced internal changes with the departures of crucial personnel, including its chief financial officer, Alex Appleton, and company founder and CEO, Peter Wall. Presently, the company’s stock is valued at approximately 6.25 pence, reflecting the ongoing volatility in the market. Although there was a brief boost in share prices following Donald Trump’s victory in the U.S. elections, it was short-lived, with prices subsequently returning to lower levels.
Despite these challenges, Argo Blockchain reported a gross profit of $3.8 million for the year ending December 2023. This was a significant recovery from 2022, a year that nearly saw the company facing bankruptcy and experiencing considerable financial loss of $42.6 million. The sale of the Helios mining facility for £54 million played a pivotal role in stabilizing the company’s finances, allowing Argo to retain ownership of its operational machines from the facility.
Argo Blockchain’s recent financial manoeuvres underscore its commitment to maintaining operational stability and exploring growth opportunities amid market fluctuations.
