Argo Blockchain Plc, a leader in cryptocurrency mining, has announced the submission of a block listing application for 31,406,429 ordinary shares. The shares, each valued at £0.001, are expected to be admitted to the Official List and commence trading on the London Stock Exchange's Main Market at 8:00 am on Friday, August 16, 2024.
This block listing of shares is connected to the warrants issued during the company’s fundraising event on July 30, 2024. The shares are part of the company's current exemption from issuing a prospectus under the Prospectus Regulation Rules. Argo Blockchain plans to apply for an additional block listing in January 2025 to cover the remaining 26,393,571 ordinary shares under the warrant, pending further availability.
Upon issuance, the block-listed shares will rank equally with the existing issued ordinary shares of Argo Blockchain. The company, dual-listed on the LSE (ARB) and NASDAQ (ARBK), operates primarily with renewable energy sources, with mining operations in Quebec and Texas, and offices in the US, Canada, and the UK.
In 2021, Argo Blockchain became the first climate-positive cryptocurrency mining company and joined the Crypto Climate Accord.
The information for this article is based on a press release statement from Argo Blockchain Plc.
In other recent news, Argo Blockchain, a global cryptocurrency mining company, reported significant financial developments. The company announced the early repayment of its $35 million loan from Galaxy Digital Holdings Ltd, nearly four months ahead of schedule. This move, achieved through a combination of cash flow from operations, funds from equity raises, and the sale of non-core assets, highlights Argo's commitment to financial discipline.
In addition to this, Argo Blockchain announced a private placement deal amounting to approximately £6.5 million, which includes the issuance of 57,800,000 ordinary shares and equivalent warrants. This development is part of the company's ongoing efforts to secure funds for general corporate purposes such as working capital and repayment of existing debts.
On the earnings front, Argo Blockchain reported a 4% revenue increase in its Q1 2024 earnings call, reaching approximately $17 million. The earnings call also revealed an improvement in its cash position to $12.4 million, up from $7.4 million at the end of 2023, and the successful mining of 319 bitcoins with a mining margin of 38%.
However, Compass Point adjusted its outlook on Argo Blockchain, reducing the price target from $3.00 to $1.00, while maintaining a neutral rating. This adjustment followed the company's Q1 results, which missed consensus estimates.
Despite these challenges, Argo Blockchain maintains the potential for growth through the development of smaller sites or by capitalizing on favorable pricing for machines after the upcoming Bitcoin halving event. These are the recent developments from Argo Blockchain.
InvestingPro Insights
As Argo Blockchain Plc gears up for the trading of its newly block-listed shares, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Argo Blockchain currently has a market cap of approximately $81.83 million. Despite the company's focus on sustainability and being the first climate-positive cryptocurrency mining company, it has faced challenges reflected in its financial metrics. The revenue growth over the last twelve months as of Q1 2024 stands at 11.53%, with a significant quarterly increase of 49.5%, indicating potential for future expansion.
However, with an adjusted P/E ratio of -2.82, the company's profitability is under scrutiny, especially as analysts do not expect Argo Blockchain to be profitable this year. The stock has experienced considerable volatility, with a 6-month price total return of -53.1%. Such volatility is corroborated by one of the InvestingPro Tips, which highlights the stock's price movements as quite volatile. Additionally, the company does not pay dividends, which could be a factor for income-focused investors to consider.
For those interested in a deeper analysis, there are additional InvestingPro Tips available on the platform, including insights into Argo Blockchain's valuation, which implies a strong free cash flow yield, and concerns regarding the company's short-term obligations exceeding its liquid assets. These data points and tips provide a more nuanced view of Argo Blockchain's financial standing and future prospects, essential for making informed investment decisions. For further details and tips, investors are encouraged to visit https://www.investing.com/pro/ARBK.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.