London-listed Bitcoin miner Argo Blockchain has raised £4.2m through the sale of new shares to an institutional investor.
The company will issue 76.9 million ordinary shares at a purchase price of 5.5p each for the unnamed investor.
Argo Blockchain said the proceeds from this will support the relocation or sale of its Bitcoin mining equipment in the Helios facility in Texas, whilst maintaining its mining operations in Quebec.
The group added that the funds will support its efforts to diversify revenue as it expands into “high-performance computing” (HPC).
Argo chief executive Thomas Chippas said: “This subscription strengthens our balance sheet, moving Argo closer to execution of the HPC opportunity at Baie-Comeau and Helios fleet movement, as described in the Company’s Q3 2024 Results Announcement released on 20 November 2024.”
Argo Blockchain became the first cryptoasset company to be listed on the London Stock Exchange after its 2018 IPO. The group’s shares debuted at 12.5p and surged dramatically in the crypto rush of 2021, reaching a peak of 282p in February of that year.
The firm’s soaring share price was short-lived as the ‘crypto winter’ – a period in 2022 during which the value of the cryptoasset market shrunk – followed.
2023 saw the departure of chief financial officer Alex Appleton and company founder Peter Wall as CEO.
The company has struggled to keep its share price up, with stock currently valued at just 6.25p. Argo did see a slight share price bump following the victory of Donald Trump in the US election in November, however, it has since fallen below levels pre-election.
The firm reported a gross profit of $3.8m for the year ended December 2023 after facing the brink of bankruptcy in 2022, a year that saw Argo lose $42.6m.
Argo was able to strengthen its balance sheet through the sale of its Helios mining facility for £54m – the company maintained ownership of its machines that were operating at the facility prior to the sale.
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