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Argo Blockchain raises funds to expand mining capacity

The firm has raised £22.4mln in a private placement, with the capacity expansion due to take place in the first half of 2021

Argo Blockchain PLC - Argo Blockchain raises funds to expand mining capacity

Argo Blockchain PLC (LON:ARB) said it has raised £22.4mln through a private placement with certain institutional investors, part of which will be used to expand its cryptocurrency mining capacity.

The company said that under the placing it will issue 28mln shares at a purchase price of 80p each, a 25% discount to its closing price last Friday, to certain institutional investors that have already subscribed.

READ: Argo Blockchain to begin trading on OTCQB venture market from Wednesday

Argo said the proceeds will be used for “working capital and general corporate purposes”, including the expansion of its mining capacity in the first and second quarters of 2021 through a hardware purchase from two leading manufacturers.

The firm said the new hardware is expected to be installed in batches between February and June and is scheduled to be fully operational by June. Argo added that the expansion will add around 610 petahash (processing power to generate Bitcoin) to its installed computing power, taking the total to 1,685 petahash by the end of the second quarter.

Shares in Argo were trading at 93.6p late on Monday morning, down 12.5% but still a 17% premium on the placing price.

--Adds share price--

Quick facts: Argo Blockchain PLC

Price: 261.8475 GBX

LSE:ARB
Market: LSE
Market Cap: £955.39 m
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