First Crypto Mining Company To Raise $32.5 Million Through IPO on London Stock Exchange

Argo Mining (ticker: ARB), a UK-based crypto mining company that just had an IPO on the London Stock exchange had an initial goal of raising £20 million (approximately USD$26 million) through the IPO. But the company was able to raise £5 million (about USD$6.5 million) more than that.

Argo provides “accessible” crypto mining via a subscription service.

The company kicked off the IPO on LSE with about 156 million shares accounting for 53.2% of its issued shared capital, according to a company document. At the launch of the IPO, the shares were priced at 16 pence which gave the company a total market valuation of £47 million pounds or USD$61.2 million.

Argo is similar to other crypto mining companies that offer different subscription models based on the cryptocurrency that they wish to mine. According to their website, Argo is currently offering three packages that are differentiated by the capacity of the mining power provider. As of right now, the company is only offering mining subscriptions for BTG, ETH, ZEC, and ETC.

And as you might expect, all of their packages are currently sold out. Needless to say, the IPO was very well received. And the company is now working on increasing the mining power that they can offer to consumers.

In the company document, Jonathan Bixby, the executive chairman of the company said:

“Argo’s admission to the London main market is a major step in the company’s development and will put us in a strong position to execute our long-term growth strategy. We are delighted with the strong response from investors which will enable us to grow our business in multiple jurisdictions.”

According to the Financial Times, Bixby said that he wants Argo to be “the Amazon Web Services of crypto.”

He also went on to say that more than 90 percent of crypto mining is now being done by the elites on an industrial scale because it is technically very difficult to do. Not only that, it is also very expensive to buy the right equipment for mining crypto. You would be spending $5,000 a machine and you would also be paying that amount up front.

This goes to show how out of reach crypto mining has been from the common person. And that is the reason why we are seeing a sharp increase in companies that offer subscription models to mine cryptocurrency.

But in a way, these companies have made it easier on the wallets of the people because not only will they not have to pay the full price for the equipment (which also delays the amount of time which they would start getting an ROI), but it also helps to not have to keep the equipment in their house or garage. This is important because cryptocurrency mining equipment just creates a lot of heat and noise. And for most people, that might not be very ideal.

After seeing how successful Argo’s IPO was, other crypto mining companies in the space are also considering IPOs.

Comments (No)

Leave a Reply