Argo Blockchain to raise $57.5 million in debt financing
The British mining company Argo Blockchain plans to raise $57.5 million via a U.S. debt offering.
According to поданной в SEC форме, Argo will offer senior notes with a coupon rate of 8.75% and a maturity date of 30 November 2026. The minimum denomination of the notes will be $25.
In connection with the offering, the company has filed for Nasdaq listing of the bonds under the ticker ARBKL. If approved, trading is expected to commence within 30 business days after the first issue of the debt securities.
Independent rating agency Egan-Jones Ratings Company assigned the bonds a B rating (low, speculative-grade), according to Argo.
The proceeds will be used to finance the construction of a data centre in Texas and the purchase of mining equipment for it.
Argo also intends to use the proceeds for general corporate purposes and potential acquisitions in the blockchain and cryptocurrency sector.
In September, Argo, which trades on the London Stock Exchange, secured an additional listing on Nasdaq, a move that it announced in August.
As of writing, ADS on the shares (ticker ARBK) were trading at $18.75 in pre-market trading. The issue price was $15. The company’s market capitalisation stood at more than $858 million.
In June, Argo received a loan of £14 million (~$19.4 million) from the crypto-trading bank Galaxy Digital, founded by Mike Novogratz. It used bitcoin as collateral.
In October, the company reported that year-to-date it had mined 1,646 BTC, and total cryptocurrency reserves stood at 2,182 BTC (~$148.9 million at current rates).
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