Cointime

Cointime

Download App
iOS & Android

Bitcoin Miner Argo Blockchain Secures £4.2M Lifeline as Mining Margins Shrink

Cointime Official

From financemagnates by Damian Chmiel

Argo Blockchain, the publicly listed Bitcoin miner from Wall Street (NASDAQ: ARBK) and London (LSE: ARB), has secured £4.2 million ($5.3 million) through a share subscription. The BTC mining company issued approximately 76.9 million new ordinary shares at 5.5 pence per share to an institutional investor.

Wall Street Bitcoin Miner Argo Blockchain Raises £4.2M in Share Placement

The fresh capital will support multiple strategic initiatives, including the potential relocation or divestment of mining equipment from its Helios facility in Texas, while maintaining Bitcoin mining operations in Quebec. The funds will also advance the company's planned expansion into high-performance computing (HPC).

Thomas Chippas, Argo. Source: LinkedIn

"This subscription strengthens our balance sheet as we move forward with our HPC opportunity at Baie-Comeau and Helios fleet movement," said Thomas Chippas, CEO of Argo Blockchain.

Argo is one of several Wall Street mining companies seeking new revenue streams by shifting focus to HPC and AI. This strategic move aims to diversify operations and capitalize on the growing demand for computational power in the AI sector. Matthew Sigel, head of digital assets research at investment management firm VanEck, projects that this transition could generate $38 billion in value for mining companies by 2027.

The transaction will be executed through a cashbox mechanism, with the new shares ranking equally with existing ordinary shares. Following the subscription, Argo's total issued share count will increase to 717.2 million shares.

Challenging Market for Bitcoin Miners

The funding comes as Argo faces challenging market conditions, having reported a pretax loss of $38.8 million in the year to date, with mining margins narrowing to 8% in the third quarter of 2024, down from 58% in the previous year.

“The third quarter was a difficult quarter for BTC miners, including Argo,” added Chippas. “It is positive that we have seen improvement in BTC mining economics in October, and that this has continued into November.”

A small consolation for Argo is that it is not alone in reporting losses. Industry leaders such as Bitfarms, Marathon Digital Holdings, TeraWulf, and HIVE Digital Technologies also faced challenges in maintaining profitability during Q3 2024. The sole exception was Hut 8, which managed to achieve modest net profit of $0.9 million.

Despite Bitcoin reaching record highs, nearing $100,000 last month and climbing 125% year-to-date, Argo's shares on Wall Street and the London Stock Exchange have significantly declined. Their value has dropped by over 70% since the beginning of the year.

Comments

All Comments

Recommended for you

  • American Bitcoin's Bitcoin reserves have increased by approximately 623 BTC in the past 7 days, bringing its current holdings to 4941 BTC.

    Emmett Gallic, a blockchain analyst who previously disclosed and analyzed the "1011 insider whale," posted on the X platform revealing updated data on the Bitcoin reserves of American Bitcoin, a crypto mining company supported by the Trump family. In the past seven days, they increased their holdings by about 623 BTC, of which approximately 80 BTC came from mining income and 542 BTC from strategic acquisitions in the open market. Currently, their total Bitcoin holdings have risen to 4,941 BTC, with a current market value of about 450 million USD.

  • The US spot Ethereum ETF saw a net outflow of $19.4 million yesterday.

    according to TraderT monitoring, the US spot Ethereum ETF had a net outflow of 19.4 million USD yesterday.

  • Listed companies, governments, ETFs, and exchanges collectively hold 5.94 million Bitcoins, representing 29.8% of the circulating supply.

    Glassnode analyzed the holdings of major types of Bitcoin holders as follows: Listed companies: about 1.07 million bitcoins, government agencies: about 620,000 bitcoins, US spot ETFs: about 1.31 million bitcoins, exchanges: about 2.94 million bitcoins. These institutions collectively hold about 5.94 million bitcoins, accounting for approximately 29.8% of the circulating supply, highlighting the trend of liquidity increasingly concentrating in institutions and custodians.

  • The Bank of Japan is reportedly planning further interest rate hikes; some officials believe the neutral interest rate will be higher than 1%.

    according to insiders, Bank of Japan officials believe that before the current rate hike cycle ends, interest rates are likely to rise above 0.75%, indicating that there may be more rate hikes after next week's increase. These insiders said that officials believe that even if rates rise to 0.75%, the Bank of Japan has not yet reached the neutral interest rate level. Some officials already consider 1% to still be below the neutral interest rate level. Insiders stated that even if the Bank of Japan updates its neutral rate estimates based on the latest data, it currently does not believe that this range will significantly narrow. Currently, the Bank of Japan's estimate for the nominal neutral interest rate range is about 1% to 2.5%. Insiders said that Bank of Japan officials also believe there may be errors in the upper and lower limits of this range itself. (Golden Ten)

  • OKX: Platform users can earn up to 4.10% annualized return by holding USDG.

    According to the official announcement, from 00:00 on December 11, 2025 to 00:00 on January 11, 2026 (UTC+8), users holding USDG in their OKX funding, trading, and lending accounts can automatically earn an annualized yield of up to 4.10% provided by the OKX platform, with the ability to withdraw or use it at any time, allowing both trading and wealth management simultaneously. Users can check their earnings anytime through the OKX APP (version 6.136.10 and above) - Assets - by clicking on USDG. Moving forward, the platform will continue to expand the application of USDG in more trading and wealth management scenarios.

  • The Federal Reserve will begin its Reserve Management Purchase (RMP) program today, purchasing $40 billion in Treasury bonds per month.

     according to the Federal Reserve Open Market Committee's decision on December 10, the Federal Reserve will start implementing the Reserve Management Purchase (RMP) program from December 12, purchasing a total of $40 billion in short-term Treasury securities in the secondary market.

  • Bitcoin treasury company Strategy's daily transaction volume has now surpassed that of payment giant Visa.

    according to market sources: the daily trading volume of Bitcoin treasury company Strategy (MSTR) has now surpassed the payment giant Visa.

  • The US spot Bitcoin ETF saw a net outflow of $78.35 million yesterday.

    according to Trader T's monitoring, the US spot Bitcoin ETF had a net outflow of $78.35 million yesterday.

  • JPMorgan Chase issues Galaxy short-term bonds on Solana network

     JPMorgan arranged and created, distributed, and settled a short-term bond on the Solana blockchain for Galaxy Digital Holdings LP, as part of efforts to enhance financial market efficiency using underlying cryptocurrency technology.

  • HSBC expects the Federal Reserve to refrain from cutting interest rates for the next two years.

    HSBC Securities predicts the Federal Reserve will maintain interest rates stable at the 3.5%-3.75% range set on Wednesday for the next two years. Previously, Federal Reserve policymakers lowered rates by 25 basis points with a split vote. The institution's U.S. economist Ryan Wang pointed out in a report on December 10 that Federal Reserve Chairman Jerome Powell was "open to the question of whether and when to further cut rates at next year's FOMC press conference." "We believe the FOMC will keep the federal funds rate target range unchanged at 3.50%-3.75% throughout 2026 and 2027, but as the economy evolves, as in the past, it is always necessary to pay close attention to the significant two-way risks facing this outlook."

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company