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Ergo Blockchain Plc (Loan: ARB, (NASDAQ: ARBK) shares more than doubled on Wednesday as the news cryptocurrency mining The giant’s deal with blockchain firm Galaxy Digital took the market by storm.
like us shed light on This morning, bitcoin (BTC/USD) The miner has sealed a definitive agreement with Galaxy for the sale of the Helios mining facility to Argo. The $65 million transaction for the Dickens County, Texas facility and another $35 million in collateral-backed debt comes at a critical time as the Argo team seeks to keep the mining company afloat in an environment that has seen several peers file for bankruptcy. have seen.
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The asset-backed loan is for an initial 36 months and 23,619 Bitmain S19J Pro mining rigs are secured by Helios and some of them by Argo’s data centers in Canada.
Peter Wall, CEO of Ergo Blockchain, said in a Press release,
“This transaction with Galaxy is a transformational one for Argo and benefits the company in a number of ways. It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and increased liquidity. to help ensure continued operations through the ongoing bear market. It also allows us to focus on optimizing our operations with significantly lower capex and opex requirements.
Argo Share Double
Argo Blockchain is in a strong position to continue its crypto mining operations as a result of these transactions. Galaxy’s agreement to host Argo’s mining rigs at Helios has excited investors and helped generate more interest in the bitcoin miner’s shares.
ARB share price was up 108% at 07:17am ET on Wednesday, with the stock trading around $9.05 (£7.49) in London.
On Tuesday, Nasdaq suspended Argo shares at the request of the mining company, a decision taken before today’s announcement. Trading Minor’s ADS and unsecured notes in the US will resume when markets open in both the UK and US on Wednesday, 28 December 2022.
