Argo Blockchain secures future

Argo Blockchain (LON: ARB) has secured a deal that will reduce the crypto currency miner’s debt by £34m and enable it to continue in business. The shares bounced back from suspension and are two-thirds higher at 6.25p, having been around 8.7p early in the day.

Galaxy Digital Holdings (TSX: GLXY) is acquiring Argo Blockchain’s Helios facility in Texas for £54m and Galaxy will provide a £29m loan to replace current debt. Argo Blockchain will still operate the bitcoin mining machines in the Helios facility.

- Advertisement -

The two-year hosting agreement includes the provision of electricity by Galaxy via a fixed price purchasing agreement that it will sign. There will also be a hosting fee.

The focus will be growing the two datacentres in Quebec, which are powered by hydroelectricity. These are still owned by Argo Blockchain.

The new loan will be secured on 23,619 Bitmain S191 Pro mining machines at Helios, plus some of the mining machines in Quebec. The initial term is 36 months. The disposal funds and loan will be used to pay £70m of debt and interest, plus other creditors.

Third quarter figures have been delayed, but because these are not required on the Main Market in London Nasdaq trading will also recommence. The company has been warned that the price for the ADSs is required to be above $1 for a minimum of ten consecutive days by 12 June 2023 or the Nasdaq listing will be cancelled.

- Advertisement -

Latest News

Subscribe to the UK Investor Magazine email newsletter

Register for our free email newsletter and receive the latest investment news, podcasts, event information and offers.

More Articles Like This

Tagdiv Cloud library - template content.