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Shares in London-listed bitcoin miner Argo Blockchain (ARB.L) surged higher on Wednesday as the company announced plans to seek a dual listing in the US.
Argo said it had filed paperwork with the US Securities and Exchange Commission (SEC) to list shares in the US. The company did not name an exchange but said earlier this month it was considering a possible listing on the Nasdaq (^IXIC).
Argo will raise money from US investors by selling American Depositary Shares (ADS), an instrument commonly used by overseas companies looking to tap the US market.
Argo hasn’t yet decided how many ADS to sell and at what price. The company said the dual listing was likely to go ahead in the coming months, subject to the SEC’s approval and market conditions.
A dual listing will allow Argo to access more capital and tap into the enthusiasm for cryptocurrency among US investors.
Shares in Argo surged over 10% in London following the announcement. The stock was helped by a recovery in the price of Bitcoin (BTC-USD).
Founded in 2017, Argo runs Bitcoin mining facilities – large banks of computers that “mine” new Bitcoin by completing work on the network. The company said in June that it owned 1268 Bitcoin or BTC equivalent, a haul worth around $39m at current prices.
Read more: What is crypto-mining and can anyone do it?
Argo became the London Stock Exchange’s (LSEG.L) first listed crypto miner when the company IPO’d in 2018. Since then, its share price has largely traced the price of Bitcoin. Argo’s stock was worth around 5p for much of 2020 before surging as bitcoin rose to all-time highs in late 2020 and early 2021. Argo’s share price hit a record high of 284p in February before falling back as Bitcoin crashed. Argo’s stock is today worth 96p, valuing the business at £358m.
Watch: What are the risks of investing in cryptocurrency?
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