blockchain shares rise in deals to avoid bankruptcy
Mining company Crypto Argo Blockchain on Wednesday said it would sell its own mining facility Helios for $65 million
It will refinance a new asset-backed loan as it seeks to avoid bankruptcy, raising its London-listed shares.
Argo :
which warned earlier this month that it
might have to file for Chapter 11 bankruptcy protection, said
Due to lack of cash, the deals will allow the company to continue its operations.
Argo shares listed in London
which have fallen 92% so far this year, rose
- 120% to 8.5p in early trading
- after CISG and refinancing with
The company said in a statement that the deals include refinancing loans with a new credit of $35 million with the Galaxy, which will help reduce its total indebtedness by $41 million.
It was the coded mining
company, founded by CEO Peter Wall in 2017
- Struggling with increased costs
- and pressure margins amid lower bitcoin prices
- and higher energy costs in Helios.
Cryptocurrency miners like Argo Blockchain use computers to solve crypto problems and get a bonus in the form of cryptocurrency.
Cryptocurrency mining was considered an "emerging challenge to energy reliability in the coming years"
this month by North American Electric Reliability Corporation.
London-based Argo said it plans to
concentrate its operations in its two data centres in Quebec, Canada.
which are fully powered by low-cost hydropower.
The deal with the Galaxy... provide us with a stronger balance sheet and enhanced liquidity to help ensure continuity of operations through the continuous bear market .
This year was difficult for crypto miners as shares of Marathon Digital, Riot Blockchain and Valkyrie Bitcoin Miners ETF fell between 80% and 90% as they suffered from burning money and debt.
Compute also filed for bankruptcy for
the cryptocurrency mining data center operator in September.
Argo :
- whose Nasdaq-listed shares were
- halted on December 27, stating that it anticipated
- resume trading there on Wednesday.
It's usual for businesses to employ various
financial strategies to avoid bankruptcy
including raising capital by selling shares.
If the company in question is involved in the blockchain industry and has experienced an increase in the value of its shares, it may be due to a variety of factors.
Some possible reasons for this may include increased demand for blockchain technology, positive news or company-related developments, or simply a general upward trend in the stock market. Without further context or information, it is difficult to determine what may have caused the value of the company's shares to rise to avoid bankruptcy.
a UK company involved in the blockchain industry may have seen an increase in the value of its shares as part of a deal to avoid bankruptcy.
There could be several reasons behind this.
- such as increased demand for the company's products or services
- positive news or company-related developments
It is also possible that the company has taken other steps
in addition to selling shares, to avoid bankruptcy
such as restructuring its operations
- seeking new sources of financing
- or negotiating with creditors.
- Without more information about
the specific company and the circumstances of its financial situation, it is difficult to determine exactly why the value of its shares has risen.
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