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The stock price of United Kingdom-based Bitcoin miner Argo Blockchain PLC (LSE: ARB; NASDAQ: ARBK), spiked by more than 100% during U.K. trading hours on this Wednesday and closed up 73.33% on the London Stock Exchange.
Source: LSE, 5-day Chart of Argo Blockchain Plc
According to the London Stock Exchange (LSE), on Dec. 28, 2022, its share price surged from 3.60 to 8.49. However, its previous close price on Dec. 28, 2022 was 6.50.
The reason came out here is the company announced it would sell its Texas-based Helios facility to Galaxy Digital Holdings Ltd (TSX: GLXY) (“Galaxy”) a financial services and investment management firm led by billionaire investor Mike Novogratz.
The UK’s Argo Blockchain Plc (ARB.L) said on Dec. 28, 2022 that it will sell its mining facility, Helios, for $65 Million that will refinance a new asset-backed loan to avoid bankruptcy.
It recently mentioned in its tweet that “We have closed on the sale of Helios to Galaxy Digital.” It also noted the benefits of the deal as it will reduce debt by $40M, improve liquidity, simplify operating structure, and allow the company to continue its mining operations.
Argo’s “Press Release” Highlights
- Argo’s subsidiary to sell its Helios facility to Galaxy for $65 million (£54 million) and refinance asset-backed loans with a new $35 million (£29 million) loan with Galaxy
- Transactions will reduce total indebtedness by $41 million (£34 million) and simplify Argo’s operating structure
- Argo will maintain ownership of all mining machines, and Galaxy will host Argo’s fleet of Bitmain S19J Pros at Helios
- Transactions will strengthen Argo’s balance sheet, improve Argo’s liquidity position, and enable the Company to continue operation
In light of the transaction with Galaxy, Argo will not report earnings results for Q3 2022 at this time. The Company is designated by the SEC as a foreign private issuer and is required to comply with regulatory filing requirements in its home market. The UK Financial Conduct Authority requires semi-annual reporting of financial results.
As previously disclosed, Argo requested a suspension of trading of its ADSs and unsecured notes on Nasdaq on Tuesday, Dec. 27, 2022. It must be noted that the crypto mining industry hitted hard this year amid rising energy costs and falling Bitcoin prices.
The CEO Statement
Peter Wall, the CEO of Argo Blockchain, said “This transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market.”
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
