Argo Blockchain Raises £4.2 Million Through Share Subscription
Argo Blockchain, a leading cryptocurrency mining company, raised £4.2 million through a share subscription, issuing approximately 76.9 million new ordinary shares at a price of 5.5 pence each.
The share subscription, announced on December 2, utilized a cashbox mechanism, allowing efficient share issuance without additional shareholder approval. Following this transaction, Argo's total issued shares exceed 717 million.
Argo Considers Relocating Its Bitcoin Mining Facility in Texas
An undisclosed institutional investor acquired shares worth £4.2 million to enhance the company's operations and future plans. The net proceeds will support key initiatives, including the potential relocation or sale of mining equipment at the Helios facility in Texas. The company is considering moving its 125,000-square-foot facility in Dickens County after two years of operation.
Despite these changes, Argo remains committed to its Bitcoin mining operations in Quebec, which utilize renewable energy. The capital raised will also facilitate the company’s diversification into high-performance computing (HPC), aligning with the increasing demand for computational power in the AI sector.
“This funding strengthens our balance sheet and positions us to advance the HPC opportunity at Baie-Comeau while managing the Helios fleet movement,” stated Thomas Chippas, CEO of Argo Blockchain.
Navigating a Tough Market
This capital injection occurs as Bitcoin miners, including Marathon Digital, Bitfarms, and Argo, face financial challenges. In Q3 2024, Argo reported a pretax loss of $38.8 million year-to-date, with mining margins dropping to 8%, down from 58% the previous year.
Despite these struggles, the firm remains optimistic due to recent improvements in Bitcoin mining economics following a rise in Bitcoin prices last month.
Argo's focus on HPC and renewable energy reflects a strategic shift towards sustainable business models. This trend among crypto mining firms aims to explore opportunities beyond Bitcoin mining to maintain competitiveness. Analysts project that the pivot to HPC could unlock significant value, estimating a $38 billion revenue opportunity by 2027.