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.
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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