(Alliance News) - Argo Blockchain PLC on Monday announced it has entered into a securities purchase agreement with unnamed institutional investors for a GBP22.4 million private placement of 28 million shares at a price of 0.80 pence per share.
The London-based cryptocurrency miner said the net proceeds of the private placement will be used for working capital and general corporate purposes, including the expansion of the company's mining capacity in the first and second quarters of 2021 through a purchase from two undisclosed manufacturers.
Shares in Argo Blockchain were down 13% at 93.10 pence in London on Monday.
"This new mining hardware expansion is expected to be installed in batches at Core Scientific Inc's [Bellevue, Washington-based infrastructure and software solutions provider for artificial Intelligence and blockchain] facilities in the US between February to June, and is scheduled to be fully operational by June. This expansion will add approximately 610 petahash to the company's installed computing power, bringing it to a total of 1,685 petahash, or 1,68 exahash, by the end of the second quarter of 2021," it added.
New York, US-based investment bank H C Wainwright & Co LLC has acted as the exclusive agent for the private placement, Argo Blockchain said.
By Zoe Wickens; zoewickens@alliancenews.com
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Argo Blockchai. (ARB)