By Anthony O. Goriainoff
Shares in Argo Blockchain PLC fell Friday after it said that it has taken strategic actions to strengthen its balance sheet, and that they include a 24 million pound ($26.8 million) fund-raising via a subscription with a strategic investor.
Shares at 0702 GMT were down 5.50 pence, or 16%, at 28.50 pence.
The London-listed cryptocurrency mining company said that the investor agreed to subscribe for around 87 million ordinary shares at 0.276 pence a share, and that it will use the proceeds for working capital and general corporate purposes.
The company also said it has amended an equipment-financing agreement with an affiliate of New York Digital Investment Group LLC, and that this will release GBP5 million of restricted cash. It also modifies the amortization schedule for the company's existing loans, Argo said.
Argo said it has signed an agreement with a third party for the sale of 3,400 new Bitmain S19J Pro machines for GBP6 million in cash.
"After careful consideration, we are convinced that taking these steps will better position the company to navigate the current market conditions and preserve shareholder value," Chief Executive Peter Wall said.
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(END) Dow Jones Newswires