Shares of Argo Blockchain PLC (LON: ARB; NASDAQ: ARBK) more than doubled on Wednesday as news of a deal with crypto mining giant and blockchain firm Galaxy Digital hit the market.
As highlighted this morning, Bitcoin (BTC/USD) miners have reached a definitive agreement with Galaxy for the sale of Argo’s Helios mining facility. His $65 million deal for a facility in Dickens County, Texas, and another of his $35 million secured loans keep the Argo team alive with mining companies in an environment where multiple peers are filing for bankruptcy. It was done at a critical time to try to
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The asset-backed loan is guaranteed for the first 36 months by Helios’ 23,619 Bitmain S19J Pro mining rigs and several of these rigs in Argo’s data centers in Canada.
Argo Blockchain CEO Peter Wall said in a press release:
“This transaction with Galaxy is transformative for Argo and will benefit the company in several ways. It will reduce debt by $41m (£34m) and strengthen our balance sheet , the increased liquidity will allow us to continue operating in the ongoing bear market, and we will also be able to significantly reduce our capital and operational cost requirements so that we can focus on optimizing our operations. increase.”
Argo Strains Doubled
Argo Blockchain remains in a strong position to continue its crypto mining business as a result of these transactions. Galaxy’s agreement to host Argo’s mining rig on Helios seems to have helped cheer up investors and spark more interest in Bitcoin miner stocks.
ARB shares were up 108% at 7:17 am on Wednesday, trading at around $9.05 (£7.49) in London.
On Tuesday, the Nasdaq suspended shares in Argo at the request of the mining company. This was done ahead of today’s announcement. Trading is his ADS for Minor and he will resume US unsecured bonds when markets open on Wednesday 28 December 2022 in both the UK and US.
