Cryptocurrency mining company Argo Blockchain (NASDAQ:ARBK), based in London, raised almost $7.5 million by issuing new shares.
The funds raised from this share sale, which included a private placement of £5.134 million ($6,635,386.96) and a public sale of £616,000 ($796,143.04), will be utilized to decrease the company’s existing debt.
Prior to the sale, Argo reported an outstanding debt of £59.1 million ($76,380,840).
The shares sold in this round represent approximately 12% of the company’s market capitalization before the sale.
The shares were priced at 10 pence each (14.3 cents), which is about 14% lower than the 30-day volume-weighted average price (VWAP) of Argo’s stock, Coindesk reported.
In the previous fiscal year, Argo reported a net loss of £194.2 million ($250,985,051), a significant drop from the net income of £30.8 million ($39,806,074) reported in the preceding year.
This loss was primarily due to the sharp decline in Bitcoin‘s (CRYPTO: BTC) value over the past year, which has put pressure on mining companies across the industry.
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Argo managed to avoid bankruptcy, which some of its competitors faced, by selling its Helios mining facility in Dickens County, Texas, to Galaxy Digital for $65 million.
Additionally, Argo secured a $35 million loan from Galaxy Digital Holdings Ltd (OTC:BRPHF), a financial services firm focused on cryptocurrency led by Michael Novogratz.
The loan is secured against Argo’s mining equipment.
At the time of writing, ARB shares are trading at 10.74 pence, a decrease of over 20%.
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