What’s Going On?
A crypto mining company has announced plans to list on the London Stock Exchange in a blockchain IPO first.
Why Does It Matter?
Argo Blockchain said it hopes to raise £20 million and expects to be valued at around £40 million following the IPO, reported Business Insider.
The company was set up last year to provide what it calls mining-as-a-service, it was reported. The new service allows consumers to mine cryptocurrencies through Argo’s website using smartphones and computers.
What Are The Prospects?
Argo is a company with zero revenues, a handful of staff and Canadian roots, said the Financial Times. But it has received permission from the UK Listing Authority to list on the main market of London Stock Exchange, reported City AM.
The company’s co-founder, Canadian tech entrepreneur Jonathan Bixby, told the FT: “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. We want to be the Amazon Web Services of crypto.”
The company says it plans to charge $25 a month for access to the kind of computing power required to mine cryptocurrencies, with four offered at launch: bitcoin gold, ethereum, ethereum classic and zcash. Customers are to be limited to one contract each.