Argo Blockchain PLC (LSE:ARB, OTCQX:ARBKF, NASDAQ:ARBK, ETR:0XP) experienced a significant decline in its share price, plummeting more than 16% on Monday morning. This drop came after the company conducted an equity round that raised £7.8 million.
Institutional investors were issued new shares at a price of 20.5p, representing a 24% discount compared to the previous closing price. However, when considering a volume-weighted 30-day basis, the discount was only 1%.
The funds raised from this equity round will be primarily allocated towards the company’s working capital, paying off existing debts, and serving general corporate purposes. This injection of capital is expected to enhance Argo Blockchain’s operations and position the company for future growth.
Alongside the equity round announcement, Argo Blockchain released its December operational update. The update revealed that the company successfully mined 155 bitcoins, representing a 4% increase compared to the previous month. Additionally, Argo Blockchain generated $6.6 million (£5.2 million) in revenue, marking a 25% month-on-month growth.
Despite the decline in share price, Argo Blockchain’s shares were being traded at 22.75p at the time of writing, indicating that the market may still have confidence in the company’s long-term prospects.
While the equity round had a temporary impact on the share price, Argo Blockchain’s solid operational performance and revenue growth demonstrate its ability to capitalize on the opportunities presented by the cryptocurrency market. With a focus on effective utilization of the funds raised, Argo Blockchain aims to position itself as a prominent player in the blockchain industry.
The source of the article is from the blog macnifico.pt