Argo Blockchain PLC on Monday said it has raised £4.2 million through a new share subscription, which will be used to support diversification into high-performance computing.

London-based Argo is a blockchain technology company focused on cryptocurrency mining with operations in the US and Canada.

The company will issue 76.9 million shares at a purchase price of 5.5 pence per share. The price represents a 32% discount on the last closing price of 8.10 pence.

Shares in Argo Blockchain were down 23% to 6.25 pence in London on Monday morning.

Argo said the net proceeds will support its ‘strategic plans and working capital needs’. This includes the potential relocation or sale of mining equipment from a facility in Texas, while allowing the company to maintain its bitcoin mining operations in Quebec, Canada.

The funds will also be used to explore diversification into high-performance computing at the company’s Quebec site.

The subscription was by an unamed ‘institution’. After the subscription, the company will have around 717.3 million ordinary shares in issue.

Chief Executive Officer Thomas Chippas said: ‘This subscription strengthens our balance sheet, moving Argo closer to execution of the HPC opportunity at Baie-Comeau and Helios fleet movement.’

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