Bitcoin miner Argo Blockchain has announced a private placement of its ordinary shares and accompanying warrants to an institutional investor. The transaction is expected to generate gross proceeds of approximately £6.5 million ($8.3 million).
Argo Blockchain Announces $8.3 Million Private Placement
According to the announcement, the bitcoin miner Argo Blockchain (Nasdaq: ARBK) will issue 57.8 million ordinary shares at a purchase price of £0.1125 per share, along with warrants to purchase an additional 57.8 million shares. The exercise price for the warrants is set at £0.1125 per share, with an exercise period of five years, Argo disclosed.
The issuance price is at a premium to the 30-day, 60-day, and 90-day volume-weighted average prices (VWAP), and a 10% discount to the closing middle market price on July 29, 2024. H.C. Wainwright & Co. is acting as the exclusive placement agent for the private placement. Argo stated that the net proceeds from this placement will be used for working capital, general corporate purposes, and the repayment of debts.
Argo stated that the new shares are set to begin trading on the London Stock Exchange on or around July 31, 2024. On Tuesday, at approximately 2 p.m. EDT, ARBK shares dropped 8% against the dollar during the days trading. Despite this decline, ARBK has remained up 21% over the past 30 days. In recent months, other miners have also sought private placements. For instance, at the end of May, Tether invested $100 million into Bitdeer.