Argo Blockchain Boosts Funds with $7.5M Share Sale

Crypto miner Argo Blockchain has gathered $7.5 million in a new share sale. The company raised this sum by selling off shares privately and publicly, according to coindesk.

Argo Blockchain sold shares privately for 5.134 million pounds and publicly for 616,000 pounds. The raised funds aim to cut down on the company’s existing debt, which stood at 59.1 million pounds prior to the sale.

The shares sold make up around 12% of the company’s pre-sale market cap. They sold at a price of 10 pence per share, marking a 14% discount to the 30-day volume weighted average price of Argo stock.

In the past year, the value of Bitcoin sharply fell, affecting the company’s net income. As a result, Argo reported a net loss of 194.2 million pounds, a stark contrast to the net income of 30.8 million pounds the year before.

To avoid bankruptcy, the London-based company sold its Helios mining facility in Texas to Galaxy Digital for $65 million. It also secured a $35 million loan from the Michael Novogratz crypto-focused financial-services firm.

Despite these measures, Argo Blockchain’s shares have dipped by more than 20%, currently standing at 10.74 pence.

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