[ad_1]
Shares of bitcoin miner Argo Blockchain (ARBK) rose 14% on Monday after the company achieved listing compliance with Nasdaq, thanks to a late-December deal with Galaxy Digital to avoid bankruptcy and the recent rise in the bitcoin price.
Argo, whose shares are also listed on the London Stock Exchange, said it met the requirement to continue listing its shares on Nasdaq on January 13 after bids for its shares remained above $1 for 10 days. back-to-back, according to a statement.
On Dec. 16, Nasdaq notified Argo that its shares failed to meet stock exchange listing rules because closing bid prices for its shares were below $1 for 30 consecutive days. The miner was given until June 12 this year to regain his Nasdaq listing privileges before he could be delisted from the exchange.
Shares of the miner had turned into a penny stock in the second half of last year when its share price fell to $0.38 on December 16, after the brutal crypto winter weighed heavily on it. . In particular, Argo nearly declared bankruptcy after being affected by rising energy costs and a sharp drop in bitcoin prices.
Argo Blockchain Shares (FactSet)
However, last month the miner narrowly avoided bankruptcy by agreeing to sell its Helios mining facility in Texas to Michael Novogratz’s crypto-focused financial services firm, Galaxy Digital, for $65 million and a loan of $35 million.
The transaction helped Argo strengthen its balance sheet and avoid bankruptcy after it found itself in a precarious position when a $27 million financing deal fell through in October, according to a Jefferies analyst. “Deleveraging should bring some relief to ARBK after its previously announced capital raise with a strategic partner failed,” analyst Jonathan Petersen wrote in a Dec. 28 research note.
“With less CapEx [capital expense] dedicated to the development of mining facilities, ARBK should have liquidity to buy additional miners and increase the hash rate faster,” added Petersen.
Shares of the miner are up more than 400% since its Dec. 16 low of $1.92. On Monday, mining stock peers Marathon Digital (MARA) and Hive blockchain (HIVE) both rose more than 9% while the price of bitcoin rose around 0.6%.
Read more: Argo Blockchain’s Bitcoin Mining Margin Widens the Most in at Least a Year
|
Sources 2/ https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9iaXRjb2luLW1pbmVyLWFyZ28tYmxvY2tjaGFpbnMtc2hhcmVzLTE5MjQzNTg4OS5odG1s0gFbaHR0cHM6Ly9maW5hbmNlLnlhaG9vLmNvbS9hbXBodG1sL25ld3MvYml0Y29pbi1taW5lci1hcmdvLWJsb2NrY2hhaW5zLXNoYXJlcy0xOTI0MzU4ODkuaHRtbA?oc=5 The mention sources can contact us to remove/changing this article |
[ad_2]