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 itcoin">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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