By
Mayowa Adebajo
April 15th, 2024
During the IPO, Argo Blockchain managed to raise more that it initially planned namely owing to the support provided by some cornerstone investors.
Cryptocurrency mining firm Argo Blockchain PLC has gone down in history becoming the first company in the crypto industry listed on the London Stock Exchange and has managed to raise $32 million (£25 million) in its initial public offering (IPO).
Argo Blockchain is a London-based firm that offers crypto mining opportunities on a subscription base. The company’s clients have a possibility to work directly through their own computers or mobile devices and mine four cryptocurrencies, including Bitcoin Gold (BTG), Ethereum (ETH), Ethereum Classic (ETC), and Zcash.
Nevertheless, Argo Blockchain has informed that it will be able to add and remove cryptocurrencies from its offerings in the future. The company opens instant access to its mining rigs enabling users transfer all their mined coins to their digital wallets.
Owing to the support of a number of heavyweight investors, the company has attracted about $6.5 million (£5 million) more than it initially planned. The target sum for this IPO was established at the level of roughly $25.5 million (£20 million).
As it has become known, approximately 156 million company’s shares, which account for 53.2% of the total issued shared capital, were presented on the exchange. As one share was evaluated for 16 pence, it gives the firm about $61.2 million (£47 million pounds) of a total market valuation.
The company’s executive chairman Jonathan Bixby stated:
“Argo’s admission to the London main market is a major step in the company’s development and will put us in a strong position to execute our long-term growth strategy. We are delighted with the strong response from investors which will enable us to grow our business in multiple jurisdictions.”
The company began its way to the London Stock Exchange in May, when it received an approval from the UK Listing Authority and got an opportunity to be listed on the exchange. In June it launched its crypto mining subscription service.
The company has a mission to make mining accessible for a wide audience. Earlier this year, Bixby explained his vision of their company’s role:
“More than 90 percent of crypto mining is done by elites on industrial scale because it is technically very difficult to do. It is incredibly expensive to buy, up front, the hardware you need at $5,000 a machine.”
Nevertheless, we should mention that Argo Blockchain is not the only company working in the mining industry that wants to benefit from the possibilities of the stock market. As it has been revealed earlier, the largest world’s manufacturer of cryptocurrency mining equipment Bitmain is also considering a variant of going public.
At the same time, two other China-based crypto mining equipment producers, Canaan Creative and Ebang Communication, have already submitted their applications for conducting their IPOs on the Hong Kong Stock Exchange.