London-based Argo Blockchain has successfully raised £4.2 million through the issuance of new shares.
- Funds will be used for the relocation and sale of equipment from Texas to Quebec.
- Argo Blockchain aims to diversify its revenue with a focus on high-performance computing.
- The firm has faced financial challenges following a drop in share prices post-2021.
- Recent organisational changes include departures of key executive figures.
London-listed Argo Blockchain has raised £4.2 million by selling new shares to an unnamed institutional investor, issuing 76.9 million ordinary shares priced at 5.5p each. This move is aimed at bolstering the company’s financial position, specifically to facilitate the relocation or sale of its Bitcoin mining equipment from the Helios facility in Texas, while sustaining mining operations in Quebec.
The funding will also support Argo Blockchain’s strategic initiative to diversify its revenue streams through expansion into high-performance computing (HPC). Argo’s chief executive, Thomas Chippas, noted that the financial boost strengthens the company’s balance sheet, bringing it closer to realising HPC opportunities at its Baie-Comeau site and the Helios site transformation.
Since its inception as the first cryptoasset company to list on the London Stock Exchange after its 2018 Initial Public Offering (IPO), Argo has seen its shares debut at 12.5p. The shares once soared to a peak of 282p in February 2021 during the cryptocurrency boom. However, this surge was short-lived due to a subsequent downturn in the crypto market known as the ‘crypto winter’ in 2022.
The year 2023 presented significant challenges for Argo, marked by the departure of Chief Financial Officer Alex Appleton and company founder Peter Wall as CEO. Despite these changes, the company witnessed a marginal increase in share value following Donald Trump’s election victory, but it has since decreased to levels below those observed prior to the election.
In 2022, Argo neared bankruptcy, reporting a loss of $42.6 million, yet it ended 2023 with a gross profit of $3.8 million. The firm’s financial recovery was aided by the sale of its Helios mining facility for £54 million, while retaining ownership of its mining machines located there.
Argo Blockchain’s recent capital raise is a strategic effort to stabilise its financial health amidst past challenges and future growth plans.
