By
Godfrey Benjamin
April 9th, 2024
Argo Blockchain plans to sell 75 million shares with 7.5 million available at the IPO, each worth ten of its own common stock.
Argo Blockchain PLC (LON: ARB) is launching a Nasdaq IPO of 75 million American depositary shares (ADS) and expects to raise 100 million pounds. The company, which is the only crypto miner listed on the London Stock Exchange, says each ADS represents 10 of its common stock. In a statement, Argo says it intends to sell 7.5 million pounds worth of ADS (priced at 131p) in the proposed IPO.
Argo shares rose 9.5% in early London trading, to 1.43 pounds ($1.98) after the announcement made last month. In addition, the London-based company intends to trade under the ticker ‘ARBK.’ According to reports, multinational banks such as Jefferies and Barclays will facilitate the sales of the shares, with Canaccord Genuity and Stifel GMP co-leading the initiative.
Argo Blockchain enlisted the services of some brokerage firms for its Nasdaq initiative. Other brokers associated with the project for the Nasdaq offering include Compass Point, D.A. Davidson & Co., and Ladenburg Thalmann. In addition, Roth Capital Partners, finnCap Ltd, and Tennyson Securities round out the group.
Argo Blockchain announced earlier this month that it was the first publicly-traded crypto miner to embrace climate positiveness. It achieved this from scope-one, scope-two, and greenhouse gas (GHG) emissions from the value chain linked to its mining endeavors.
In August, Argo mined a total of 206 Bitcoins, amounting to a total of 1,314 for the first eight months of 2021. Also, the blockchain company generated 6.83 million pounds in crypto mining revenue in August. In addition, Argo retained a 1,659 Bitcoin balance at the end of the month.
In recent months, Argo Blockchain PLC has been raising funds. The London-based firm secured a 14-million-pound ($19 million) loan from Galaxy Digital. The financial services and investment management company also lent the former an additional 18 million pounds ($25 million) last month.
Outside of Planned Shares Sale, Argo Blockchain Acquired Real Estate
Argo also increased its real estate portfolio earlier in March, purchasing DPN LLC of New York. This acquisition bestowed ownership of a parcel of land in West Texas to construct a new cryptocurrency mining facility. The said land is 320 acres and will host the proposed 200-megawatt facility, which will take 12 months to complete. In addition, the new facility provides access to up to 800 megawatts of cheap and renewable electricity.
The initial purchase price of the Argo acquisition was $5 million, paid through issue and allotment to DPN shareholders. Pursuant to fulfilling certain contractual milestones, Argo will disburse an additional sum of $12.5 million. Argo chief executive, Peter Wall, weighed in on the land acquisition deal and the opportunity it provides to scale up. In his own words:
The land purchase “not only gives us greater control over our mining operations but also the ability to meaningfully expand our mining capacity on a large scale.”