Argo Blockchain Raises $10 Million through Share Issuance to Repay Debts and Enhance Operation
Crypto mining company Argo Blockchain has successfully concluded share issuance, raising approximately £8 million (around $10 million).
Crypto mining company Argo Blockchain announced it successfully concluded share issuance, raising approximately £8 million (around $10 million). The company issued 38 million new shares at a price of 20.5 pence per share, targeting institutional investors.
The placement price represented a discount of approximately 24% to the closing price on January 5, just before the announcement. According to Argo, the proceeds raised from discounted share placing will be used for repaying debts, working capital, and general corporate purposes.
The share issuance and placement are aimed towards strengthening Argo Blockchain’s financial position, sustaining operational growth and adapting to changes in its leadership structure.
Recently, the company witnessed a significant change in its leadership as Seif El-Bakly, the Chief Operating Officer, stepped down from his position on January 5, 2024, to pursue new opportunities.
El-Bakly served as the interim CEO from February 2023, until the expected appointment of a CEO. The company expressed gratitude to El-Bakly for his contributions during his tenure and mentioned that his performance share units vested effectively on the day of his departure.
Continuing the role of El-Bakly will be Sebastien Chalus, the Chief Strategy Officer — overseeing operations of the companies since February 2023. The transition is expected to be seamless, ensuring continuity in Argo Blockchain’s operational strategy.
Company’s Operational Surge in December 2023
During December 2023, Argo Blockchain registered good operational performance. The company mined 155 Bitcoin, reflecting a 4% increase in daily Bitcoin production compared to the preceding month. This surge was attributed to heightened transaction fees on the network, and increased operational efficiency, offset by a rise in network difficulty.
“I am delighted to close out 2023 with our strong performance both in December and in the full fourth quarter. During the fourth quarter, our daily production was 4.8 bitcoin per day, which was a 20% increase from the prior quarter. This is despite a 19% increase in monthly average network difficulty in the fourth quarter compared to the prior quarter,” said Thomas Chippas, Chief Executive of Argo.
Mining revenue for December increased to $6.6 million, marking a 25% upswing from November, and establishing December as the highest revenue month of 2023. The revenue growth trend has persisted for the fourth consecutive month, with both monthly revenue and daily Bitcoin production experiencing consistent increases.
As of December 31, 2023, Argo Blockchain held 9 Bitcoin on its balance sheet, supplemented by other digital assets equivalent to 18 Bitcoin.
Investors and industry observers will be closely watching Argo Blockchain’s next steps as it leverages the newly acquired funds to further its operational capabilities and meet its corporate objectives in the evolving cryptocurrency sector.
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