Argo Blockchain Avoids Bankruptcy, Sees Stock Price Soar 400%

• Argo Blockchain, a UK-based Bitcoin mining company, saw its stock price increase 400% after regaining listing compliance with Nasdaq on January 23.
• The company was at risk of bankruptcy due to rising energy costs and a sharp drop in Bitcoin prices.
• Argo avoided bankruptcy in December by agreeing to sell its Helios mining facility in Texas to Galaxy Digital for $65 million and a $35 million loan.

Argo Blockchain, a United Kingdom-based Bitcoin mining company, has seen its stock price rise exponentially after regaining listing compliance with Nasdaq on January 23. Since its 0.38 low on December 16, the miner’s stock has risen by 400% to $2.03. The development comes after a December 2022 agreement with Galaxy Digital to avoid bankruptcy, which was accompanied by a rise in Bitcoin.

The miner was put in a difficult situation in October of last year when a deal for $27 million in funding fell through, putting it at risk of bankruptcy due to rising energy costs and a sharp drop in Bitcoin prices. As a result, Nasdaq notified Argo that its shares did not comply with exchange rules because closing bid prices for its stock were below $1 for 30 consecutive days. The exchange gave Argo a deadline of 12 June to reclaim its listing privileges, else it risked being delisted from the exchange.

Fortunately, the miner was able to avoid bankruptcy last month when it agreed to sell its Helios mining facility in Texas to the crypto-based financial services firm Galaxy Digital for $65 million and a $35 million loan. The transaction helped Argo to bolster its balance sheet, allowing it to continue trading on Nasdaq and subsequently increasing its stock price.

This is a prime example of the power of cryptocurrency and how companies can leverage it to restructure their finances and avoid bankruptcy, as well as the importance of listing compliance for companies looking to remain on the exchange. Argo Blockchain was able to take advantage of the situation and has now seen its stock price skyrocket, proving that Bitcoin and crypto-related companies are still a viable investment opportunity.