Leading cryptocurrency miner Argo Blockchain generated £5.7 million which is approximately $7.5 million from its recently concluded oversubscribed share sale.
The Nasdaq-listed crypto mining firm plans to utilize the fund for the down payment of its outstanding debts and to pursue some innovative projects alongside. Before the sales, Argo confirmed it had about £59.1 million of outstanding debts.
Markedly, the event was a concurrent institutional and retail share sale which was oversubscribed by both new and existing shareholders.
Argo Sells Shares at 10 Pence Per Share
Argo Blockchain raised £5.13 million equivalent to $6.64 million from placing 51,340,000 new ordinary shares with institutional investors at 10 pence per share. Additionally, the publicly-traded firm secured another £616,000 (or $797,000) from a public sale to retail investors who subscribed for 6,160,000 new ordinary shares at the same 10 pence per share.
As previously announced, Argo had its target of raising about £4.78 million which is roughly $6.18 million at the time of this writing, from the sales of a minimum of 47,750,000 new ordinary shares. Compared to the 30 trading day volume-weighted average price (VWAP), the shares were sold at a 14% discount and a 26% discount to the closing mid-price on Tuesday, July 18th.
Noteworthy, the new shares are only a 12% representation of Argo Blockchain’s previously issued ordinary share capital. In the meantime, the crypto miner has filed applications to the United Kingdom regulator Financial Conduct Authority (FCA) and the London Stock Exchange for the admission of the new shares which are expected to take effect as from July 24th.
Crypto Miners Feel the Heat of the 2022 Bear Market
In April, Argo Blockchain reported a full-year net loss of £194.2 million compared with net income of £30.8 million the year before. This was a reflection of the significant drop in Bitcoin (BTC) price in the previous 12 months and Argo Blockchain was not the only affected crypto miner. Several mining firms across the industry including Core Scientific strived to stay afloat.
Publicly traded crypto mining company Core Scientific struggled so much before it filed for Chapter 11 bankruptcy protection in Texas.
