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Highlights
- Argo Blockchain Plc has filed F1 registration to list its American Depositary Shares on the New York Stock Exchange under the ticker name “ARBK”.
- The company aims to raise USD 75 million through its listing and will also continue to trade on the Main Market of the London Stock Exchange.
Argo Blockchain Plc (LON: ARB), which operates in bitcoin and other cryptocurrencies mining, has filed F1 Registration for an initial public offer (IPO) on the New York Stock Exchange. The blockchain technology company plans to raise USD 75 million and list its ordinary shares on the Nasdaq Global Market under the ticker name "ARBK” by offering American Depositary Shares (ADS). Jefferies and Barclays will act as lead coordinators for the proposed offering.
The company’s shares currently trade on the London Stock Exchange under the symbol "ARB" and has a market cap of £502.49 million as of 25 August.
Argo Blockchain is one of the leading companies with a key focus on the cost-effective mining of bitcoin and other cryptocurrencies. To execute the mining strategy, the company uses the latest generation mining machines. It has a fleet of more than 21,000 machines hosted at the company-owned facilities in North America. At present, the company has four facilities in Canada and the United States.
Bitcoin mining and its growing scope
Bitcoin mining is a type of auditing in which miners act as auditors to verify the legitimacy and validity of Bitcoin transactions. Whenever there is an exchange of bitcoin anywhere, the transactions need to be verified and maintained in the public ledgers. Bitcoin miners do the verification of transactions and group them together to form blocks.
Miners also make sure the transaction is accurate and help prevent the double-spending of the same bitcoin. Miners are compensated for their work to solve complex cryptographic algorithms with a reward and fees. At present, miners get rewarded 6.25 Bitcoin for each successful and accurate block.
The global Bitcoin mining market is a highly competitive segment with many players involved. The company’s main focus is to mine bitcoin and other cryptocurrencies in the most cost-efficient way. Mining activity consumes a lot of energy because of high power machines, and many companies are moving towards renewable sources to power mining machines.
Copyright © 2021 Kalkine Media Pty Ltd.
Key Financials of Argo Blockchain Plc
Argo Blockchain reported a 180% rise in revenue at £31.1 million (H1 2020: £11.1 million) during the six months ended 30 June 2021, while its EBITDA increased by 332% at £16 million. The higher revenue and profit margin were mainly due to increases in production and upswing in Bitcoin prices. As a result, the total number of bitcoin and its equivalent held by the company increased by 127 bitcoins to 1268 BTC. The company continues to have a positive outlook, focusing on expanding mining capacity and investing in innovative opportunities in emerging cryptocurrencies.
Key Risk
The revenue and profitability of the company largely depend on the Bitcoin prices, which tend to be very volatile, with the price drop of over 20% on certain occasions. Hence, forecasting the company’s actual revenue will be difficult as the company gets its mining rewards in the form of Bitcoin and other cryptocurrencies.
