As we reported on the 3rd August 2018, Argo, a UK-based provider of cryptomining services, was admitted to the standard segment of the Official List and to trading on the Main Market of the London Stock Exchange, following a successful placing of Ordinary Shares to raise £25m before expenses for the Company.
Commenting on Argo’s flotation, Jonathan Bixby, Executive Chairman, 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.”
Here we publish an update by @ZaksTradersCafe
One of the functions of the stock market is to introduce a new type of business model and new ideas for investors to back. This was a point underlined by the IPO last week of Argo Blockchain, the cryptocurrencies mining group.
The offer of mining as a service via a simple platform to anyone with an enthusiasm for all things crypto offers both a level playing field and an economic solution. This has been welcomed on the London Stock Exchange and beyond in the financial media, with extensive coverage.
But while some companies can be seen to go into consolidation mode in the immediate weeks and months after an IPO, it would appear that this is not the case as far as Argo Blockchain is concerned.
The company’s goal according to its President and Executive Director, Mike Edwards, is to hit a first year 30,000 plus capacity target. Clearly, in order to do this it will have to ramp up capacity as soon as possible.
The latest announcement of a multi-year agreement to supply 9.5 megawatts of clean energy at one of the cheapest rates around takes Argo in the direction of its initial goal.
Indeed, the lease of two data centres in Quebec, Canada enable it to service as many as 150,000 subscribers. It also reminds investors that whether one is a fan of crypto or not, this is a business based on recurring revenue.
Those who may not hanker for the rollercoaster price action of Bitcoin do have the alternative choice of seeing Argo as simply a new age utilities group. From the viewpoint of Mike Edwards, the latest announcement provides backing for the first two years of Argo Blockchain’s business plan.
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