Argo Blockchain Shares Jump 16% After Securing $40 Million Funding
Argo Blockchain, a London-listed cryptocurrency miner, currently trades at 4.03 GBX. The company focuses on renewable energy for its mining operations.
Funding Announcement
- Argo Blockchain has secured a non-binding agreement for $40 million in senior secured convertible loans.
- Share prices surged by 16% following the announcement.
- The funding includes an initial $15 million tranche and additional $25 million over 18 months.
- The investment aims to upgrade Argo's Bitcoin mining fleet in Quebec, Canada.
Loan Terms and Investor Group
- The loan carries an interest rate of approximately 8%.
- The investor group receives three seats on the board and a 20-day exclusivity period.
- A break fee of $1,500 is applicable.
Current Financial Status
- Despite the recent stock surge, Argo remains down 12% year-to-date.
- CEO Thomas Chippas stepped down on February 28 amid financial struggles.
- The company faces potential delisting from Nasdaq due to previous stock price declines.