Argo Blockchain (ARBK) Stock Skyrockets

Argo Blockchain (NASDAQ: ARBK) stock soared more than 40% in early trading after the crypto miner announced deals that will reportedly help it avoid bankruptcy for the time being. ARBK stock is now up about 20% since trading began.

Argo’s stock is also listed on the London Stock Exchange, and it has offices in the U.S., the U.K. and Canada.

Argo Blockchain’s Deals

Argo will obtain $65 million by selling its Texas-based Helios crypto mining operations to Canada’s Galaxy Digital.

Argo also agreed to take out a $35 million loan from Galaxy and use the funds to refinance its existing loans. The transactions will lower Argo’s debt by $41 million, the company reported.

Argo noted it would continue to own its mining machines in Texas and reported its deals with Galaxy are expected to close today. The company is using tens of thousands of its Bitcoin (CCC:BTC-USD) mining machines as collateral for its loan from Galaxy.

Argo reported that the agreements would allow it to continue operations.

Argo’s Plan Going Forward

The company stated it would concentrate its efforts on “growing and optimizing” its two data centers in Quebec, Canada. The centers are “powered fully by low-cost hydroelectricity,” Argo reported.

Argo added it does not plan to report its third-quarter results at this time. It noted its home market — the U.K. — only requires companies to report their financial results twice annually.

Argo requested a halt in the trading of ARBK stock yesterday, and the trading of the shares has resumed today.

The Performance of ARBK Stock

Heading into today, the shares have fallen 95% in 2022 and 18% in the last month, but they have advanced 39% in the last five trading days.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

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