Argo Blockchain shares rose by that number as it regained its listing on Nasdaq

  • Shares in UK Bitcoin mining company Argo Blockchain rose as the company gained compliance listing on the Nasdaq Stock Exchange.
  • Since its low of 0.38 on December 16, the miner’s stock has gained 400% to $2.03.

Bitcoin stocks [BTC] Argo Blockchain miner rose as much as 18% on Jan. 23 after the company regained compliance with the Nasdaq listing. This development came on the heels of a December 2022 agreement with Galaxy Digital to avoid bankruptcy, which was accompanied by a surge in BTC.

Source: CNBC

On January 13, the UK-based company announced that it had met the requirement to continue listing its shares on the NASDAQ after bids on its shares had been above $1 for 10 consecutive days.

What went wrong with Argo Blockchain?

In December, Nasdaq Argo announced that its stock was non-compliant with exchange rules because its stock closing prices had been below $1 for 30 consecutive days. Nasdaq has given Argo a June 12 deadline to regain its listing privileges or risk being delisted from the exchange.

The miner’s shares became a penny in the latter half of last year, with the share price dropping to $0.38 on Dec. 16 after the crypto winter. Argo, among other crypto companies, was on the verge of bankruptcy due to high energy costs and the sharp drop in BTC prices.

The miner avoided bankruptcy last month when it agreed to sell its Helios mining facility in Texas to crypto-based financial services firm Galaxy Digital for $65 million and a $35 million loan.

The deal helped Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious position when a $27 million financing deal fell through last October.

Apparently, Argo Blockchain could benefit from a lower debt burden after a previously disclosed failed capital raise with a strategic partner. The company can have more money to buy additional miners and increase the hash rate faster while reducing capital expenditure to develop mining facilities.

Since the low of $0.38 last December 16, the miner’s stock has risen more than 400% to $2.03.

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