Crypto Mining Firm Argo Blockchain Raises $32.5M USD In London IPO

Announcements, Investing, News | August 6, 2018 By:

Crypto mining firm Argo Blockchain has raised £25 million ($32M USD) through an initial public offering (IPO) on the London Stock Exchange (LSE).

Founded in 2017 and is based in London, Argo Blockchain operates as a mining as a service (MaaS) business that primarily focuses on the cryptocurrency market in the United Kingdom. It is mining Bitcoin Gold (BTG), Zcash (ZEC), ethereum (ETH) and Ethereum Classic (ETC) on behalf of subscribers who pay a monthly fee and get rewards in proportion to the selected package. In May this year, Argo won approval to be listed on the LSE and launched its platform in June.

According to an initial admission document, the company placed a total of 156 million shares accounting for 53.2% of its issued shared capital. Shares were priced at 16 pence, valuing Argo at a market capitalization of £47 million ($61M USD). Argo raised £5 million ($6.5M) more than its initial goal of £20 million through the IPO, with registered shareholders including Miton Capital, Henderson Global Investors, and Jupiter Asset Management.

“Argo’s admission to the London main market is a major step in the company’s development and will put us in a strong position to execute our long-term growth strategy,” said Argo executive chairman Jonathan Bixby. “We are delighted with the strong response from investors which will enable us to grow our business in multiple jurisdictions.”

Bixby said the company intends to emulate the rapid growth of Iceland-based crypto ming firm Genesis Mining, which launched a similar remote mining service three years ago and now has two million users. To do this, Argo Blockchain plans to expand its mining operations to Iceland and China, and plans to only use electricity from suppliers of renewable energy or from grids in places where power primarily comes from hydro or solar sources.