Argo Blockchain Raises $8.3 Million in Private Placement of Its Common Stock and Accompanying Warrants

Bitcoin miner Argo Blockchain has announced that it will privately place its common shares and accompanying warrants with an institutional investor. The transaction is expected to generate approximately £6.5 million (US$8.3 million) in total proceeds.

According to the announcement, Argo Blockchain will issue 57.8 million common shares at a purchase price of £0.1125 per share, and issue warrants to purchase an additional 57.8 million shares. Argo revealed that the exercise price of the warrants is set at £0.1125 per share, with a term of five years.

The issuance price is higher than the 30-day, 60-day, and 90-day volume-weighted average prices (VWAP), but lower than the 10% middle price of the closing price on July 29, 2024. HC Wainwright Co. acted as the exclusive placement agent for this private placement. Argo stated that the net proceeds from the placement will be used for working capital, general corporate purposes, and debt repayment.