Crypto Miner Argo Blockchain Raises $7.5M in Share Sale; Stock Slumps

Proceeds from the private placing and public sale will be used to pay down debt.

AccessTimeIconJul 19, 2023 at 8:07 a.m. UTC
Updated Jul 19, 2023 at 8:31 a.m. UTC

Cryptocurrency miner Argo Blockchain (ARB) has raised 5.7 million British pounds ($7.5 million) through the sale of new shares.

The sale comprised a private placing that raised 5.134 million pounds and a public sale that raised 616,000 pounds, the London Stock Exchange-traded company said Wednesday. The funds will be used to reduce the company's outstanding debt. Argo said prior to the sale it had 59.1 million pounds of debt outstanding.

  • What You Need to Know About the Bitcoin Halving
    01:47
    What You Need to Know About the Bitcoin Halving
  • Bitcoin Miner Bitfarms Warns of Default
    04:20
    Bitcoin Miner Bitfarms Warns of Default
  • How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
    01:17
    How Bitcoin Mining Got 'Even More Competitive' In 2022: Analyst
  • Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
    07:43
    Stronghold Digital CEO on State of Bitcoin Mining Amid FTX Fallout
  • The number of shares sold represent about 12% of the company's pre-sale market cap at price of 10 pence per share, a discount of around 14% to the 30-day volume weighted average price (VWAP) of Argo stock.

    In April, the London-based company reported a full-year net loss of 194.2 million pounds compared with net income of 30.8 million pounds the year before, reflecting the sharp drop in the value of bitcoin (BTC) during the previous 12 months, as mining firms across the industry struggled to stay afloat.

    Argo avoided the fate of bankruptcy that befell some of its peers by agreeing to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. It also agreed a $35 million loan from the Michael Novogratz crypto-focused financial-services firm, secured by its mining equipment.

    ARB shares are down more than 20% at 10.74 pence at the time of writing.

    UPDATE (July 19, 08:31 UTC): Adds size of Argo's debt in second paragraph, sale price of shares in third.

    Edited by Sheldon Reback.


    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.