First cryptocurrency company listed on London Stock Exchange raises Rs 224 crore

Q16. It is a blockchain-based cryptocurrency that works in a similar way to Ethereum and bitcoin. It is a peer-to-peer internet currency that allows for instant, near-zero cost payments to anyone in the world. It’s a decentralised payment network that isn’t managed by any central authorities. What is it known as?

A cryptocurrency mining company has raised 25 million pounds or Rs 224 crore via an initial public offering at the London Stock Exchange.

Argo Mining, a UK-based mining services provider, is the first crypto company to be listed on the LSE. The company raised five million pounds more than it had expected.

"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,” Jonathan Bixby, Executive Chairman, said. “We are delighted with the strong response from investors which will enable us to grow our business in multiple jurisdictions."

A total of 156,250,000 ordinary shares (representing 53.2% of the company's issued share capital on Admission) were placed at 16 pence per share, valuing Argo at a market capitalisation of 47 million pounds. The Placing was significantly over-subscribed, a release by the LSE said.

On admission, the Company will have 293,750,000 ordinary shares in issue.

The company was incorporated in December last year and started its services on 11 June 2018. It provides “cryptocurrency Mining as a Service (MaaS) to be available at scale to anyone, anywhere in the world.”

Currently, Argo covers four cryptocurrencies, being Bitcoin Gold, Ethereum, Ethereum Classic, and Zcash.

The company said its system allows the user to configure and manage the cryptocurrency they wish to mine, which mining pool they wish to contribute to and how they would like to store the generated coins.

The company does not intend to offer any form of cryptocurrency custody service, and therefore the users are responsible for the storage and security of their cryptocurrency.