Argo shares rose as miner avoided bankruptcy
In October last year, the Argo Blockchain team announced that the miner faced a potential slide into bankruptcy, citing financial turmoil amid the impact of higher energy costs and falling Bitcoin prices as the reasons that outcome was likely. But the bitcoin miner was also actively seeking financing to avoid this eventuality.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
A deal worth around $100 million with Galaxy Digital in December saved Argo from certain bankruptcy. The miner sold its Helios mining facility to Galaxy for $65 million and topped that with a $35 million loan, news that saw Argo shares rally amid a broader upside for Bitcoin and altcoins.
As Invezz reported late December, the company’s shares that had traded below $1 for more than 30 days straight, rose sharply after the Galaxy announcement.
From as low as $0.38 per share on 16 December 2022, the crypto stock jumped to $1 and stayed above the limit for another 10 consecutive days. The requirement to remain above $1.00 for ten days was met on 13 January, 2023, Argo Blockchain said in a statement.
It’s the uptick from the penny stock tag that has seen compliance with Nasdaq’s listing. Overall, Argo’s shares have surged more than 127% year-to-date and nearly 400% since mid-December.
The stock’s price touched a high of $2.03 on Monday.Argo Blockchain also publicly traded on the London Stock Exchange, where its shares were roughly 6% up on Tuesday morning.