Miner Argo Blockchain Attracts $7.5M to Pay Off its Debt
Argo Blockchain has successfully raised a sum of £5.75 million (~$7.5 million) from a combination of institutional and retail investors.
51,340,000 shares to institutional and 6,160,000 shares to retail investors were sold for a price of £0.1 (~$0.13) – a total of 12% of current equity.
This is a 14% discount to the 30-day weighted average price. The influx of new shares has caused the company’s capitalization to drop by 20.5%.
Despite this, Argo has seen an impressive 48% rise in share prices since the beginning of the year. At the end of 2022, the company reported a net loss of $240 million.
In January 2023, it narrowly avoided delisting from the Nasdaq where it has been trading since 2021. That same quarter, the company reported revenue of $11.4 million – a 15% increase from the previous period.
Their operating expenses also decreased by 70% over the same quarter. The firm has also gained access to cheaper electricity from the sale of Galaxy Digital’s flagship Helios data center in Texas.
