Argo Blockchain’s Share Skyrockets Over 100% After The Texas Mining Facility Deal

Key Points:

• Argo Blockchain’s share price increased by more than 100% during UK trading hours and by 73.33% on the London Stock Exchange.
• The $65 million acquisition excludes Argo’s crypto machines, which the business will continue to run at Helios.

Argo Blockchain’s share price have risen following the sale of its Texas mining operation to Galaxy Digital.

Argo Blockchain’s share price jumped more than 100% during UK trading hours on Wednesday and 73.33% on the London Stock Exchange after the company announced it would sell its Texas-based Helios facility to Galaxy Digital Holdings Ltd., an investment management and financial services firm led by billionaire investor Mike Novogratz.

The $65 million transaction excludes Argo’s crypto machines, which will continue to be operated by the company at Helios. As part of the agreement, 24,000 miners would serve as security for a US$35 million loan from Galaxy to Argo.

According to the corporation, the proceeds from the sale and loan will assist Argo in avoiding bankruptcy and repaying approximately $85 million in debt on its balance. The Bitcoin mining company expects the transaction will reduce its net debt by around $41 million. Despite the fact that the sale lifted Argo’s value on Wednesday, the stock has dropped more than 90% in the last year.

On Tuesday, Argo made a request to freeze trading in equities that are listed on the Nasdaq. This year has not been kind to the cryptocurrency mining industry, which has been hit hard by both increasing prices for energy and falling prices for Bitcoin. The hash rate of bitcoin mining dropped by almost forty percent earlier this week as a result of miners being forced to pause their activities due to the blizzard conditions that were affecting the United States.

Last week, the province of British Columbia in Canada cut off electrical connections to bitcoin miners, and the next day, one of the largest cryptocurrency miners in the world, Core Science, declared bankruptcy.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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