Deal to sell Helios facility sparked Argo Blockchain stock surge
To cope with financial difficulties, Argo Blockchain announced the sale of its largest facility to Galaxy. Following the announcement, the BTC-miner's stock showed a sharp rise.
On the day of the announcement, Argo's securities were up more than 100%, eventually closing up 73.33%. A key aspect of the upcoming deal was the fact that the equipment located at the facility would be further operated by the miner. In addition, Galaxy has expressed its willingness to provide $35 million in financing, where 24k devices will act as collateral.
For Argo Blockchain, this is an opportunity to reduce the debt burden and partially deal with financial difficulties, as it was severely affected by the bear market. Recall that earlier BTC miners demanded to suspend trading of its shares on the Nasdaq exchange. By the way, even such a high growth of quotations on the London Stock Exchange is not enough to restore the value, because during 12 months the securities of Agro Blockchain have lost 90%.