Argo Blockchain has raised $10 million through an equity offering to pay down debt and strengthen operations.
Posted: January 8, 2024 5:40 AM Updated: January 8, 2024 5:40 AM
Correction and fact check date: January 8, 2024, 5:40 a.m.
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Cryptocurrency mining company Argo Blockchain has successfully completed a share issue, raising approximately £8 million (approximately $10 million).
Cryptocurrency mining company Argo Blockchain announced that it has successfully completed a share issue, raising approximately £8 million (approximately $10 million). The company issued 38 million new shares to institutional investors at a price of 20.5 pence per share.
The placement price is approximately 24% discounted from the closing price on January 5th, just before the announcement. According to Argo, the proceeds raised through the issuance of discounted stock will be used for debt repayment, working capital and general corporate purposes.
The share issuance and placement aims to strengthen Argo Blockchain’s financial position, maintain operational growth and adapt to changes in its leadership structure.
Recently, the company witnessed a significant change in leadership, with Chief Operating Officer (COO) Seif El-Bakly stepping down from his position on January 5, 2024, to pursue new opportunities.
El-Bakly has served as interim CEO since February 2023 until a CEO is appointed. The company thanked El-Bakly for his contributions during his tenure and noted that his performance share units were effectively vested on the day he left.
El-Bakly’s role will be taken over by Chief Strategy Officer Sebastien Chalus, who will oversee the company’s operations from February 2023. The transition is expected to proceed smoothly, ensuring continuity of Argo Blockchain’s operational strategy.
The company’s operations will surge in December 2023.
In December 2023, Argo Blockchain recorded good operating performance. The company mined 155 Bitcoins, reflecting a 4% increase in daily Bitcoin production compared to the previous month. This surge was due to the network’s increased transaction fees and increased operational efficiency, offset by increased network difficulty.
“We are pleased to close out 2023 with strong performance in December and the entire fourth quarter. During the fourth quarter, our daily production was 4.8 Bitcoin per day, a 20% increase over the previous quarter. This is despite a 19% increase in average monthly network difficulty in the fourth quarter compared to the previous quarter,” said Thomas Chippas, CEO of Argo.
December mining revenue increased to $6.6 million, up 25% from November and making December the highest-grossing month of 2023. The revenue growth trend has continued for four consecutive months, with both monthly revenue and daily Bitcoin production at consistent levels. increases.
As of December 31, 2023, Argo Blockchain holds 9 Bitcoins on its balance sheet, supplemented by other digital assets worth 18 Bitcoins.
Investors and industry observers will be closely watching Argo Blockchain’s next steps as it leverages its newly acquired funds to strengthen its operational capabilities and achieve its corporate goals in the evolving cryptocurrency sector.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.
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Kumar is an experienced technology journalist specializing in the dynamic intersection of emerging fields including AI/ML, marketing technology, cryptocurrency, blockchain, and NFTs. With over three years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and providing comprehensive insights. Kumar’s specialty is producing high-impact content including articles, reports and research publications for prominent industry platforms. With a unique skill at combining technical knowledge and storytelling, Kumar excels at communicating complex technical concepts in a clear and engaging way to diverse audiences.