Argo Blockchain raises £4.2m Through Subscription by Institution

Bitcoin miner Argo Blockchain (LON: ARB) announced Monday that it has successfully raised £4.2 million through a subscription of its ordinary shares by an institution.

The company said the funds will be used to bolster its strategic initiatives and working capital needs. For example, it is expected to play a crucial role in several key areas for Argo, including the Helios facility transition, where the funds will support the potential relocation or sale of mining equipment currently housed at the Helios facility in Texas.

In addition, the company aims to maintain its Bitcoin mining operations in Quebec, while the funds are also expected to help Argo continue exploring opportunities to diversify into the high-performance computing sector, leveraging its existing infrastructure and expertise.

Argo's CEO, Thomas Chippas, stated: “This subscription strengthens our balance sheet, moving Argo closer to execution of the HPC opportunity at Baie-Comeau and Helios fleet movement, as described in the company's Q3 2024 Results Announcement released on 20 November 2024.”

Argo explained that the subscription will be executed through a cashbox mechanism involving the issuance of new ordinary shares for non-cash consideration.

The institution will initially subscribe for redeemable preference shares in a newly formed Jersey-incorporated subsidiary of Argo.

Subsequently, Argo will redeem these preference shares, effectively transferring the net proceeds of the subscription to its balance sheet.

The newly issued ordinary shares will rank the same as existing shares. However, due to regulatory constraints, the shares will not be immediately admitted to trading on the London Stock Exchange.

Argo said it will seek regulatory approval for the admission of these shares as soon as possible.