(Alliance News) – Argo Blockchain PLC on Monday said that funds raised through the share placing would be used to repay debts, after closing out 2023 with a “strong performance”.

Shares in the London-based cryptocurrency miner were down 10% at 24.30 pence each in London on Monday morning.

Argo issued 38.1 million new shares for gross proceeds of GBP7.8 million. The placing price of 20.50 pence each was at a one per cent discount to the company’s volume-weighted average price for the 30 days ended January 5.

Argo said that the proceeds will be used for working capital, repaying debts and “general corporate purposes”.

Regarding operations, the company said that it had mined 155 bitcoin during December, up slightly from 145 in November. Revenue for December also grew to USD6.6 million, up 25% from USD5.3 million in November.

Argo’s Chief Executive Thomas Chippas said: “I am delighted to close out 2023 with our strong performance both in December and in the full fourth quarter. During the fourth quarter, our daily production was 4.8 bitcoin per day, which was a 20% increase from the prior quarter. This is despite a 19% increase in monthly average network difficulty in the fourth quarter compared to the prior quarter”.

On Friday, Argo’s Chief Operating Officer Seif El-Bakly stepped down from his position to “pursue other opportunities”, and will be replaced in his duties by Chief Strategy Officer Sebastien Chalus, to whom the operations team has reported since February.

El-Bakly served as Argo’s interim CEO from February until the appointment of Chippas in November. The company said that El-Bakly’s performance share units vested effective on Friday.

By Hugh Cameron, Alliance News reporter

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