Bitcoin Miner On Wall Street Gains £6.5 Million From Institutional Broker

Bitcoin miner Argo Blockchain, appearing on the Wall Street of London stock exchange, has made known to the public a secret placement alliance with an organizational investor worth £6.5 million.

This Agreement is all about the disbursing of 57,800,000 ordinary shares, with each share going for £0.1125 on the London Stock Exchange. This deal gives an additional warrant of purchase of 57,800,000 more shares at the same cost.

Argo Plans To Use The Net Proceeds For Working Capital

The price set for the placement is above Argo’s recent trading averages and provides a 10% discount off the July 29 closing price. H.C. Wainwright & Co. is the exclusive agent overseeing this transaction.

Argo strategizes and decides to make use of its net profit as working capital, which includes the repayment of debt, and other general unified purposes.

These placement shares are expected to be admitted by the company for business, on the London Stock Exchange main market, which took place on 31 July 2024. According to the company, the net proceeds from the Private Placement are intended for working capital and other general business uses, including settling any outstanding debts.

Following the placement, Argo’s total shares amount will rise to 636,352,148. Both the newly issued shares and shares from exercised warrants will have the same status as the existing ordinary shares.

Argo Shows Strong Performances Despite Industry Challenges

Argo Blockchain runs cryptocurrency mining centers in Quebec and Texas, using renewable energy for sustainable practices. Recent financial reports from the company show better performance and strategic changes despite industry challenges.

In its latest quarterly report, the company announced a revenue of $16.8 million. This is 4% higher than the previous quarter and almost 50% more than last year. The increase in revenue came with a big drop in net loss, which went down to $3.2 million, a third of what it was before.

The Chief Executive Officer of Argo, Thomas Chippas, said the firm finished the Bitcoin halving with over $12 million in cash and reduced its debt by over $12 million in the first quarter.

He noted that the firm improved its Quebec operations by selling Mirabel. Thomas added that Argo’s team is excited about the company’s future growth and is committed to providing value to its shareholders.

Reviewing the full-year results for last year, Argo showed strength in a tough market. The company earned a small gross profit and reduced losses by 85% compared to the previous year. This shows the firm is progressing in making operations more efficient and improving financial health.