- Argo was on the verge of filing bankruptcy, but a deal with Galaxy digital saved them.
- ARBK was delisted from Nasdaq due to consecutive poor performance.
- The surge in BTC caused their bid price to be above $1 for ten days straight, thus re-entering them in Nasdaq.
Listing on a popular marketplace is always helpful to boost the business. Recently BTC miner Argo Blockchain (ARBK) gained listing compliance with Nasdaq, resulting in its shares jumping by nearly 14% on Monday. All thanks to a deal with Galaxy Digital in late December 2022 to avoid bankruptcy and the recent surge in BTC.
ARBK is already listed on London Stock Exchange, and they met the Nasdaq requirement on January 13, 2023, after the bids for their shares remained above $1 for ten days continuously. Earlier, Nasdaq notified Argo on December 16, 2022, that as their bid price has been below $1 for thirty consecutive days, they no longer comply with the rules to be listed. Moreover, provide them a merging until June 12, 2023, to regain listing or be delisted from the exchange until further processes.
ARBK became a penny stock in the latter half of last year, with prices dipping to $0.38 on December 16, 2023. This brought them closer to filing bankruptcy, as they were badly affected by stooping BTC prices and rising energy costs. They agreed to sell its Helios mining facility in Texas to Galaxy Digital for $65 million and a loan of $35 million, saving them at the last moment from filing bankruptcy.
Since December 16, 2023, the shares have gained 400%, and at the time of writing, it was trading at $1.94, with a jump of 12.14% in the last 24 hours. The market cap was at 92.698 million with a volume of 512,564 shares. The 52 weeks range is from $0.36 to $11.4, meaning the current price was closer to the lower end of the spectrum. The supposed price target is $9.00, with projected earning growth growing from $1.68 to $1.18 per share.
Other mining peers, like Marathon Digital (MARA) and HIVE, jumped by 9%, with Bitcoin rising by 0.6%.
Analyst Jonathan Petersen in a research note on December 28, 2022, said:
“With less CapEx (capital expense) dedicated to mining facility development, ARBK should have cash to buy additional miners and increase hash rate more quickly.”
Suppose the internal microeconomics of the company is strong, along with a favorable environment building up in the industry. There are chances that ARBK might recover. Also, the trifecta of problems faced by bitcoin miners worldwide, meaning the rising energy prices, increasing difficulty levels, and dropping BTC prices, is somewhat resolved to a certain extent.