7 Things to Know About the Upcoming Argo Blockchain (ARBK) IPO

September 16, 2021 1:39 PM EDT

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Argo Blockchain Plc (NASDAQ: ARBK) is set to launch its U.S. IPO next week. The company already trades on the London Stock Exchange's Main Market. The IPO will be available for investors on the RobinHood IPO access platform. Argo Blockchain is a leading blockchain technology company focused on large-scale mining of Bitcoin and other cryptocurrencies. Below are 7 important facts to focus on into the IPO.

1. IPO Timing: Argo Blockchain Plc is expected to have its IPO on the NASDAQ on September 23, 2021. The stock ticker is 'ARBK'. Normally IPOs on the NASDAQ began trading between 10AM-2PM ET.

2 IPO Price: Argo Blockchain ordinary shares are trading around $1.848 on the London stock exchange, and given the 1 ADS=10 ordinary share ratio this suggests an IPO price of around $18.48.

3. Shares Offered: Argo Blockchain is offering 7,500,000 American Depositary Shares. Each ADS represents 10 ordinary shares of Argo Blockchain.

4. IPO Valuation: The company will have 456,832,335 ordinary shares outstanding immediately after this offering, suggesting a valuation of ~$844 million.

5. Underwriters: Jefferies and Barclays are acting as the lead book-running managers for the Offering. Canaccord Genuity and Stifel GMP are acting as co-lead-managers for the Offering. Compass Point, D.A. Davidson & Co., Ladenburg Thalmann, Roth Capital Partners, finnCap Ltd, and Tennyson Securities are acting as co-managers for the Offering.

6. Important Financials: In July 2021 and August 2021, we mined 225 Bitcoin and Bitcoin Equivalent and 206 Bitcoin and Bitcoin Equivalent, respectively. Based on daily foreign exchange rates and cryptocurrency prices during the months, mining revenue in July amounted to approximately £5.6 million and mining revenue in August amounted to approximately £6.8 million. We generated this income at a gross margin of 155% and 145% for July and August 2021, respectively, or a Bitcoin and Bitcoin Equivalent Mining Margin of approximately 83% and 86% for July and August 2021, respectively. Favorable changes in the market value of Bitcoin significantly affected our gross margin and Bitcoin and Bitcoin Equivalent Mining Margin in both July and August 2021. We sold 61 Bitcoin in the month of August at an average price of £35,324.94 per Bitcoin, generating cash of approximately £2.1 million. On August 31, 2021, we held 1,659 Bitcoin and Bitcoin Equivalent valued at approximately £56,898,756 based on prices as of such date.

7. Crypto Mining Fleet: The company has a fleet of more than 21,000 machines mining Bitcoin and other cryptocurrencies and can generate more than 1,075 petahash per second, of which approximately 215 petahash is located in facilities we recently acquired in Quebec, Canada, and approximately 860 petahash is located in hosted facilities.

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Stifel, Jefferies & Co, Roth Capital, D.A. Davidson, Barclays, Ladenburg Thalmann Financial Services, Canaccord Genuity, IPO, Bitcoin