The cryptocurrency sector, which was earlier seen as a separate ecosystem from the financial sector, is steadily gaining confidence and acceptance from the mainstream. And now, London Stock Exchange, one of the oldest stock exchanges in the world, has approved Argo Blockchain to list its stocks with the exchange. It will be the first crypto company to be listed.
Argo Blockchain received the approval to go public from the UK Listing Authority, about two weeks ago. In a statement to Business Insider, Jonathan Bixby, one of the co-founders and also the Executive Chairman of Argo, said:
The firm chose London’s exchange considering the city’s role as a global hub for financial technology. A London stock market listing will provide Argo with the profile, credibility, and access to global capital to drive our growth and help us establish a leadership position in the long term.
The statement indicates that the crypto company hopes to raise £20 million in the listing, and also expects to be valued at about £40 million.
About Argo Blockchain
The firm was started last year to offer what it refers to as mining-as-a-service. Argo is a cloud-based cryptocurrency mining firm that works on a subscription-based model. The company was established in order to help individuals to mine cryptocurrencies, as the difficulty level has increased due to the involvement of ASICs and big mining firms. The company’s operation are based in Quebec, Canada and plans are to expand to Iceland and China.
Currently, subscribers can mine four cryptocurrencies including Bitcoin Gold, Ethereum, Ethereum Classic, and Zcash, remotely on Argo’s mining rigs.
Brixby said that the startup aims at making crypto mining available as a mass-market service instead of only leaving it to a select few who have the ability to afford high-performance servers and electricity. He explained:
More than 90 per cent 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.
Argo is planning to charge $25 or £18 a month for the mining activity and is not planning to create a separate mining pool; rather continuing with the existing one. Also, Argo will not hold any tokens for its customers and will be limited to one contract at a time for each customer. Earlier this year, it received an investment of $2.5 million from private investors.
The listing of the firm is huge plus for blockchain-built companies as it is likely to open up further opportunities.
Do you think other blockchain-based companies should apply to be listed on various stock exchanges? Share with us in the comments section.