Later this week, investors in both cryptocurrencies and stocks will have an exciting initial public offering to watch. In fact, it may be one of the most intriguing debuts this week. This is because the Argo Blockchain IPO will see ARBK stock officially trade in the United States.
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It’s important to note that Argo Blockchain (OTCMKTS:ARBKF) is currently available for investment by U.S. investors in the over-the-counter market. This is a company primarily listed on the London Stock Exchange, and it has been on the OTC market for some time. However, investors looking for more liquidity will likely be seeking to transfer these shares over to ARBK stock, when available.
As one of the leading global crypto miners, Argo Blockchain has been an intriguing stock to watch. This company saw its market capitalization more than double on a year-to-date basis in February during this year’s meme stock rally. However, since then, shares of ARBKF have since lost more than 50% of their value and trade near where this stock started the year.
Accordingly, Argo can be viewed as a crypto mining play offering investors a blank slate. By buying shares on the U.S. exchange, investors who feel as though they have missed the boat can still get into the crypto mining space at relatively decent levels. That is, assuming the IPO is priced as planned.
Let’s dive into some of the details of this IPO for intrigued investors.
What Investors May Want to Know About the ARBK Stock IPO
According to various reports, the upcoming Argo Blockchain IPO is set to raise approximately $138 million. This IPO is one that has become a highly anticipated offering, given the volatility in crypto markets of late. However, investors who remain bullish on the long-term trajectory of the crypto market have increasingly looked at miners as a way of gaining even more leverage to this trade.
In this regard, Argo Blockchain is an intriguing choice. Though listed in the United Kingdom, Argo operates a range of crypto mining facilities in North America. The company’s growth plans include a mega project in Texas which has drawn scrutiny. Some investors have pointed to the fact that Argo may have overpaid for the land to build this facility. However, the company remains adamant that this project will provide sufficient cash flows to make the IRR attractive for investors.
The company expects to sell 7.5 million American Depositary Shares at $18.40 apiece. This implies proceeds of $138 million, and a market capitalization of $857 million.
Shares of ARBK stock are expected to start trading this Thursday, Sept. 23. Indeed, investors giddy about the prospects of crypto miners are likely to be watching this open closely. We’ll keep a close eye on how this IPO develops as the week moves along.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.