Argo Blockchain, a crypto mining business registered on the London Stock Exchange, has launched an Initial Public Offering in the United States. Investors will be able to access the IPO using the RobinHood IPO access portal. Argo Blockchain is a prominent blockchain technology firm specializing in large-scale Bitcoin and cryptocurrency mining.
When will the IPO happen?
Argo Blockchain Plc is planned to list on the New York Stock Exchange (NASDAQ) on September 23, 2021. ‘ARBK’ is the ticker symbol for the stock. Normally, NASDAQ IPOs begin trading between 10 a.m. and 2 p.m. ET.
Argo Blockchain ordinary shares are now trading at about $1.848 on the London Stock Exchange, implying an IPO price of around $18.48 based on the 1 ADS=10 ordinary share ratio.
7,500,000 American Depositary Shares are being offered by Argo Blockchain. Each ADS represents ten ordinary Argo Blockchain shares.
Following the IPO, the business will have 456,832,335 ordinary shares outstanding, implying a valuation of $844 million.
Who is managing the IPO?
Jefferies and Barclays are serving as the Offering’s main book-running managers. The Offering’s co-lead managers are Canaccord Genuity and Stifel GMP. The Offering’s co-managers are Compass Point, D.A. Davidson & Co., Ladenburg Thalmann, Roth Capital Partners, finnCap Ltd, and Tennyson Securities.
How many Bitcoins have the firm mined lately?
We mined 225 Bitcoin and Bitcoin Equivalent in July 2021 and 206 Bitcoin and Bitcoin Equivalent in August 2021, respectively. Mining revenue in July was around £5.6 million, while mining revenue in August was over £6.8 million, based on daily foreign exchange rates and cryptocurrency prices throughout the months.
We made this money with a gross margin of 155 percent in July and 145 percent in August 2021, or a Bitcoin and Bitcoin Equivalent Mining Margin of around 83 percent and 86 percent in July and August 2021, respectively. In both July and August 2021, favorable increases in the market value of Bitcoin had a substantial impact on our gross margin and Bitcoin and Bitcoin Equivalent Mining Margin.
Based on current pricing, we had 1,659 Bitcoin and Bitcoin Equivalent on August 31, 2021, valued at roughly £56,898,756.
Crypto Mining Fleet
The company has a fleet of over 21,000 machines mining Bitcoin and other cryptocurrencies that can generate more than 1,075 petahash per second, with approximately 215 petahash in newly acquired facilities in Quebec, Canada, and approximately 860 petahash in hosted facilities.
Argo is currently constructing a mining plant with a power capacity of 200 megawatts in Texas, United States (MW).
On September 10, the company stated that it had signed into an £18.05 million (about $25 million) financing arrangement with Galaxy Digital to expand its West Texas plant, using part of the bitcoin it has mined as security. Argo’s outstanding principle now stands at $45 million after the new loan was folded into an existing £14 million (or $20 million) facility.
In August, a study from The Boatman Capital Research questioned if Argo had overpaid by up to 100 times for the property is purchased for the Texas plant. In a video shared on Twitter, Argo’s CEO Peter Wall justified the deal. He explained, “We feel like it was a fantastic bargain for the project in Texas since it wasn’t simply a land acquisition, it was a project acquisition.”