Business & Finance

Argo Thrived in London’s Main Market on its First Day

Argo Blockchain PLC joined the London Stock Market on the 3rd of August. It is the first crypto mining company to join the London Stock Market. It was able to raise $32 million for a total valuation of about $61 million.

In an initial admission document from the LSE, Argo has placed a total of 156,250,000 ordinary shares at 16 pence per share. This values Argo at a market capitalization of £47 million. These shares amount to 53.2% of the company’s issued shared capital on Admission. The placing was immensely oversubscribed. By the time of its admission, Argo will have 293,750,000 ordinary shares in issue.

Argo Blockchain PLC is a mining as a service (MaaS) company. It allows its customers to buy packages which enables them to mine cryptocurrencies. By buying any of the packages through Argo’s mobile app or via a computer, the customer rents or leases one of the servers of the company that would be used to mine cryptocurrency. The cryptocurrency mined is then transferred to the customer’s wallet.

Jonathan Bixby, the Executive Chairman of Argo says:

we are the base layer of the infrastructure so we are the Netflix or the Amazon web services, we are a subscription model that regardless of where you live, how much money you have or your technical expertise, we can on board you into mining service to be able to mine your own coins into your own wallet…” 

Argo is offering its customers three packages: small, medium and large; the customers, for now can mine any of these cryptocurrencies: Ethereum, Ethereum Classic, Bitcoin Gold and Zcash.

Regarding the flotation of the company, Jonathan Bixby, the Executive Chairman of Argo Blockchain PLC, 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.

Argo was able to raise 25 million pounds (around $32 million), with registered shareholders which include: Miton Capital, Henderson Global Investors, and Jupiter Asset Management. About this, Jonathan Bixby remarked, in an interview:

The London Market really really wanted to hear our story and they were very receptive to it,

Started its subscriptions in June, Argo has been very popular in the market. All the slots in the three kinds of packages they offer, have been sold out and according to Bixby, there are 50,000 people in the waiting list. The company is building more infrastructure and even on-boarding new people, growing the team as to accommodate the massive inflow of customers. When asked about if Argo would expand to other cryptocurrencies, Bixby replied:

We want to be very responsible in terms of how we expand the number of crypto coins we offer, but that would be customer lead, the customers tell us what they want.”

This is the first time that a mining for service company has been enlisted in the London Stock Market. The London Stock Exchange receiving the MaaS blockchain company with such enthusiasm shows its openness towards new technologies. Bixby commented that “the London Stock Exchange is entrepreneurial and open to new ideas” later also stating that the London Stock Exchange is looking for real investors and real business plans.

Argo was setup in December 2017, and it went to take in customer subscriptions in June 2018. A few days ago, it got admitted in London’s Main Market.

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