Shares of London-based bitcoin miner Argo Blockchain PLC surged more than 100% during UK trading hours on Wednesday to close. 73.33% The company floated on the London Stock Exchange after announcing the sale of its Texas-based Helios facility to Galaxy Digital Holdings, a financial services and investment management firm led by billionaire investor Mike Novogratz. .
See related articles: Bitcoin Hashrate Drops Nearly 40% As Deadly US Storm Unplugs Miners
quick facts
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The deal, worth $65 million, does not include Argo’s cryptocurrency machine, which the company continues to operate on Helios, the company said.
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As part of the deal, approximately 24,000 mining machines will serve as collateral for a $35 million loan from Galaxy to Argo.
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Funds secured by sale and loan will support Algo avoid bankruptcy The company says it will have to pay about $85 million in debt and remaining fees.
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Bitcoin miners believe the deal will reduce the company’s net debt by about US$41 million. The sale boosted Argo’s stock on Wednesday, but he’s lost more than 90% over the past year.
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Tuesday, Argo requested Suspension of trading in Nasdaq stocks.
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The crypto mining industry hard hit This year comes amid rising energy costs and falling bitcoin prices.
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Bitcoin mining hashrate (the level of computing power used for mining and processing transactions) has almost dropped. 40% at the beginning of the week A blizzard hit the United States, forcing miners to close their facilities.
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Last week in British Columbia, Canada, pause A new power connection for crypto miners, and Core Scientific, one of the largest publicly traded crypto mining companies, has filed for bankruptcy.
See related articles: Bankrupt Mining Company Core Scientific May Sell Developing Facility: Report
