The first cryptocurrency business to IPO on the London Stock Exchange has raided £25 million on its debut – equivalent to $32.5 million.
UK-based cryptocurrency mining company Argo Mining, which offers subscription crypto mining services to make the market more accessible, broke its target by some £5 million, surpassing the £20 million it was expected to raise on launch.
In doing so, it becomes the first company of its kind, or in the wider cryptocurrency space, to list on the stock exchange in London.
The IPO saw some 156 million shares available for sale, representing 53.2% of the company’s total issued share capital. Shares were priced at 16p each, giving the company a total valuation of £47 million – equivalent to around $61.2 million.
Argo Mining’s executive chairman Jonathan Bixby welcomed the launch, and said the strong response from investors would position the firm well as it continues to grow to reach new customers.
“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.”
The company was first granted approval to list back in May, before launching its crypto mining services in June. The services gives customers three package options, offering differing levels of mining power. In just a matter of weeks, the company has sold out all of its packages, which offer the chance to mine in cryptocurrencies including BTG, ETH, ZEC and ETC.
In discussions with the Financial Times, Bixby said the firm was committed to becoming the “Amazon Web Services of crypto.”
“More than 90 percent of crypto mining is done by elites on industrial scale because it is technically very difficult to do. It is incredibly expensive to buy, up front, the hardware you need at $5,000 a machine.”
The launch comes at a time when several other cryptocurrency mining firms are reported to be considering IPOs, including mining giants Bitmain, alongside China-based Ebang Communication and Canaan Creative.
The IPO has been seen by analysts as a further step towards cryptocurrency gaining mainstream acceptance.