LONDON (Alliance News) - Vela Technologies PLC said Monday it has invested a further GBP15,553 in Argo Blockchain PLC.
Vela purchased 500,000 shares in Argo at a price of 3.07 pence per share. Vela now holds an interest in 3.0 million Argo shares, which represents about 1.0% of Argo's issued share capital.
Vela said this additional investment will "benefit all shareholders" despite the future direction on Argo "seeming unclear".
On Friday, Argo said it is planning to terminate all existing cryptocurrency mining-as-a-service contracts by April, and it will not accept any new mining subscriptions.
Argo has been looking to refocus its business strategy due to difficult trading conditions in the cryptocurrency market as digital currencies start to face severe price pressure and volatility.
Despite continued demand for the services, Argo will start mining directly for its own account.
Vela said the costs to ending the contracts should be "nominal".
"We look forward to discussing and understanding the future thoughts and intentions of Argo Blockchain directly with the Argo directors in the near future. In the meantime, the Vela board believe that the opportunity of investing in a company at a 40% discount to a meaningful net cash asset base and with little drain on those assets, is a rare opportunity," said Vela Executive Director Antony Laiker.
Shares in Vela Technologies closed down 4.0% Monday afternoon at 0.17 pence each. Argo Blockchain closed up 13% in late trading at 3.39p a share.
Vela Technologies (VELA)
Argo Blockchai. (ARB)