Cryptocurrency mining company Argo Blockchain generated 5.7 million British pounds ($7.5 million) by selling new shares.
Argo conducted a private share placement raising 5.134 million pounds and a public sale raising 616,000 pounds, the London-listed company announced Wednesday. The proceeds will reduce Argo’s outstanding debt, which totaled 59.1 million pounds prior to the share sale.
The shares sold represent approximately 12% of Argo’s pre-sale market capitalization, at a price of 10 pence per share. This is a 14% discount to the 30-day volume weighted average price of Argo’s stock.
In April, London-based Argo reported a 2021 net loss of 194.2 million pounds, compared to 2020 net income of 30.8 million pounds. This reflects Bitcoin’s severe value drop over the past year, which caused mining companies industry-wide financial struggles.
Unlike some peers that went bankrupt, Argo avoided that fate by selling its Helios mining facility in Texas to Galaxy Digital for $65 million and securing a $35 million loan from Michael Novogratz’s crypto financial services firm. The loan was collateralized by Argo’s mining equipment.
As of now, ARB shares have declined over 20% to 10.74 pence.
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