Argo Blockchain's Share Sale Yields $7.50M Funding
Argo Blockchain's Share Sale Yields $7.50M Funding
British mining firm Argo Blockchain successfully generated £5.70 million ($7.50 million) through share placing.
With the fresh capital injection, Argo aims to strengthen its financial position, reduce debt, and continue its operations in the competitive industry.
On July 19, Argo Blockchain stated that the initiative involved a private placing that garnered £5.13 million and a public sale that secured £616,000.
This fundraising move allowed the London Stock Exchange-traded company to address its financial obligations while bolstering its operations and future prospects.
Accordingly, the funds obtained will be primarily used to alleviate its outstanding debt, which stood at £59.10 million before the transaction.
Subsequently, the number of shares sold during the offering represented approximately 12.00% of the business' pre-sale market capitalization. Priced at £10.00 per share, the offering provided a discount of about 14.00% of Argo stock.
Argo Blockchain's decision to raise capital comes after the company reported a significant net loss of £194.20 million for the previous fiscal year. Consequently, this decline was in stark contrast to the £30.80 million net income in 2021.
The staggering decline in Bitcoin's (BTC) value had adversely affected the profitability of mining companies across the industry, including Argo Blockchain.
Despite these challenges, the firm managed to avoid the fate of some of its competitors after the sale of its Helios mining facility in Texas to Galaxy Digital for $65 million.
Additionally, the crypto miner acquired a $35.00 million loan, collateralized by its mining equipment, from Michael Novogratz's crypto-focused business. These strategic maneuvers provided much-needed stability and financial support to the company.
Following the recent share offering, Argo Blockchain's stock price experienced a decrease of over 20.00%, with ARB shares trading at £10.90 at the time of writing.
