Argo Blockchain raises cash to reduce debt

Argo Blockchain (LON: ARB) is the worst Main Market performer following the placing and PrimaryBid offer. This raised £5.7m at 10p/share and the market price slumped 19.6% to 10.85p.

The cash raised will help to reduce the debt of the cryptocurrency miner and thereby cut the interest charge. Debt was £59.1m, including a £25m asset-backed loan from Galaxy Digital and £31.4m of senior unsecured notes. Galaxy Digital acquired the Helios facility from the company at the end of last year.

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Argo Blockchain is also evaluating opportunities with power generators to help capture the full economic value of stranded or underutilised energy.

In June, 139 Bitcoin were mined, which was lower than the previous month because of the curtailment of mining activities at the Helios facility. There should be additional cash proceeds from power trading activities by the operator of Helios.

At the end of June, Argo Blockchain held 44 Bitcoin. New BlockMiner machines are being installed at the Quebec facilities. This will increase total hashrate capacity to approximately 2.8EH/second.

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