# UK’s Argo Blockchain shares soar on deals to avoid bankruptcy
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-12-29
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Crypto miner Argo Blockchain to sell Helios for $65 million
Meta Description: Argo Blockchain sells Helios and secures loan to avoid bankruptcy, shares surge 120% in London. Stay updated on crypto news with Reuters.
URL: https://financedigest.com/uks-argo-blockchain-shares-soar-on-deals-to-avoid-bankruptcyhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-28t202202z5lynxmpeibr07grtroptp4fintech-crypto-1736814665970-compressed.jpg)

By Sinchita Mitra and Anchal Rana

(Reuters) -Crypto miner Argo Blockchain said on Wednesday it will sell its mining facility Helios for $65 million and refinance a new asset-backed loan as it seeks to avoid bankruptcy, sending its London-listed shares soaring.

Argo, which earlier this month warned that it might have to file for Chapter 11 bankruptcy protection due to insufficient cash, said the deals will allow the company to continue its operations.

London-listed shares of Argo, which have tumbled 92% so far this year, were up 120% to 8.5 pence in early trade, after the [sale and refinancing agreement with Canada-listed crypto-investor Galaxy Digital](https://www.financedigest.com/digital-sales-transformation-is-key-to-faster-higher-revenue.html "Digital sales transformation is key to faster, higher revenue") Holdings.

The transactions include refinancing [loans with a new $35 million credit](https://www.financedigest.com/6-reasons-to-take-a-car-loan-from-a-credit-union.html "6 Reasons to Take a Car Loan From a Credit Union") with Galaxy, which will help reduce its total indebtedness by $41 million, the company said in a statement.

The crypto miner, which was founded in 2017 by CEO Peter Wall, had been struggling with an increase in costs and pressured margins amid [lower](https://www.financedigest.com/bmw-bets-on-design-and-recycling-not-mining-to-lower-battery-costs.html "BMW bets on design and recycling, not mining, to lower battery costs") bitcoin prices and higher power costs at Helios.

Digital currency miners such as Argo [Blockchain use computers to solve cryptographic problems](https://www.financedigest.com/the-problem-with-blockchain.html "The problem with Blockchain") and receive a reward in the form of cryptocurrency.

Crypto mining was deemed an [“emerging challenge to power](https://www.financedigest.com/emergency-call-services-telcos-urge-eu-to-protect-telecoms-networks-from-power-cuts.html "Emergency call services, telcos urge EU to protect telecoms networks from power cuts") reliability in upcoming years” by North American Electric Reliability Corporation this month.

London-based Argo said it [plans to focus its operations at its two data](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") centres in Quebec, Canada, which are powered fully by low-cost hydroelectricity.

“(The) transaction with Galaxy… provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing [bear market,”](https://www.financedigest.com/protecting-stock-portfolios-in-a-bear-market.html "Protecting Stock Portfolios in a Bear Market") Wall said.

This year has been difficult for crypto miners with shares of Marathon Digital, Riot Blockchain and Valkyrie Bitcoin Miners ETF plunging between 80%-90% as they struggle with [cash burn](https://www.financedigest.com/europe-burns-cash-to-help-businesses-in-deepening-energy-crisis.html "Europe burns cash to help businesses in deepening energy crisis") and debt.

Crypto-mining [data centre](https://www.financedigest.com/keysource-awarded-major-contract-to-design-nationwide-network-of-data-centres-throughout-china.html "KEYSOURCE AWARDED MAJOR CONTRACT TO DESIGN  NATIONWIDE NETWORK OF DATA CENTRES THROUGHOUT CHINA") operator Compute also filed for bankruptcy in September.

Argo, whose Nasdaq-listed shares were suspended on Dec. 27, said it [expects to resume trading](https://www.financedigest.com/ab-foods-says-primark-trading-ahead-of-expectations.html "AB Foods says Primark trading ahead of expectations") there on Wednesday.

(Reporting by Amna Karimi, Sinchita Mitra and Anchal Rana in Bengaluru; Editing by Janane Venkatraman and Emelia Sithole-Matarise)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---