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Argo Blockchain secured £5.7M by selling its shareholdings. - 2
Earlier this year, the crypto miner lost £194.2 million annually due to the declining prices of Bitcoin.
Argo Blockchain, a London-based cryptocurrency mining company has successfully raised £5.7 million by issuing additional shares. The mining firm is listed in the London stock market, and recently announced that it would sell its shareholdings to raise a significant amount of funds.
The funds raised by selling the chunk of Argo shares will be utilized to clear the outstanding financial debt of the company. Argo Blockchain has revealed that the total amount to be paid to the creditors is £59.1 million.
The mining firm sold its shares at a discount of 14%, with each share worth 10 pence. The number of shares sold accounts for roughly 12% of the company’s market value before the sale.
The decision of Argo Blockchain to sell additional shares has affected its stock prices. Argo Blockchain PLC (LON: ARB) stock lost more than 36.96% in the weekly time frame.
The company faced significant challenges due to the sharp decline in the value of Bitcoin (BTC) earlier this year, resulting in a net loss of £194.2 million for the full year.
In the July 19 trading session, NYSE: ARGO stock added 0.07% to its trading prices. However, the reason behind the surge is not clear and it is assumed that some giant investor might have invested a significant amount in the market. In the last trading session, buyers were overruling the sellers.
According to data from TradingView, approximately 420 million Argo Blockchain shares are free-floating and the remaining 51.725 million are closely held either by financial backers of the company or by the board of directors.
Is Crypto Mining Profitable in 2023?
For the past few months, crypto miners and especially Bitcoin miners have been struggling due to the volatility in the crypto industry and because of the tumbling prices of digital assets. It is important to note that prices and market volatility are not the only reasons for the slow demise of the asset mining industry.
Numerous analysts and crypto miners believe that harsh regulations and significant investments with inadequate revenue are some factors behind why miners are exiting the sector.
Since cryptocurrencies came into existence, China has been the center for crypto miners, but the region banned mining and other activities related to cryptocurrencies back in 2021.
After leaving China, miners shifted their workspace to several other regions like Texas and Kazakhstan. As per relevant data, the United States is still ranked as the leading nation where most miners are leading their operations.
The debt of the BTC mining industry worldwide has been reduced from $4.5 billion to $6.00 billion at present. This amount was $8.00 billion in 2022. Mining difficulty reached a new high in June 2023, indicating increased competition. This surge resulted in a decline in profit margins.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/07/20/crypto-miner-argo-blockchain-raises-5-7m-targets-expansion/