Argo Blockchain Avoids Bankruptcy, Shares Soar 14% After Regaining Nasdaq Compliance
– Bitcoin miner Argo Blockchain’s shares rose 14% after regaining Nasdaq listing compliance.
– The miner avoided potential bankruptcy after a late December deal with Galaxy Digital.
– Argo Blockchain met the requirement for Nasdaq listing when bids for its shares remained above $1 for 10 consecutive days.
Bitcoin miner Argo Blockchain recently achieved a major milestone when its shares regained listing compliance with Nasdaq, leading to a significant jump in the miner’s stock price. The miner was on the brink of bankruptcy late last year, but was able to avoid it due to a timely deal with Galaxy Digital. Thanks to the deal and the recent rise in the price of Bitcoin, the miner was able to meet Nasdaq’s requirement for listing when bids for its shares remained above $1 for 10 consecutive days.
Argo Blockchain, which is also listed on the London Stock Exchange, had encountered a major obstacle in December when Nasdaq notified the miner that its shares did not comply with listing rules due to closing bid prices for its stock being below $1 for 30 consecutive days. The miner was given until June 12 of this year to regain its listing privileges with Nasdaq before potentially being delisted from the exchange.
The miner’s share price had become a penny stock in the latter half of 2020, when its share price dipped as low as $0.38 on Dec. 16. This dip in price happened amid the crypto winter, which had caused a dramatic decline in the prices of most digital assets. It was this bearishness in the crypto market that had caused Argo Blockchain’s share price to slip.
However, things started to turn around late last year when Argo Blockchain struck a deal with Galaxy Digital, a major cryptocurrency and blockchain investment firm. As part of the deal, Galaxy Digital invested $18.5 million in Argo Blockchain, which allowed the miner to avoid potential bankruptcy and regain its listing privileges with Nasdaq.
The miner also benefited from the recent rise in the price of Bitcoin, which has been on an upswing since late 2020. Bitcoin’s price has increased significantly in 2021, reaching over $35,000 in recent weeks. This surge in the price of Bitcoin has helped to bolster the price of Argo Blockchain’s shares, which rose as much as 14% on Monday after the company regained listing compliance with Nasdaq.
Overall, Argo Blockchain has been able to turn around its fortunes, thanks to the timely deal with Galaxy Digital and the recent rise in the price of Bitcoin. The miner’s shares have been able to regain listing compliance with Nasdaq, and the miner is now well-positioned to benefit from the current bull market in the crypto space.