Wormhole (w) 
Argo Blockchain Sees 16% Surge in Shares After Securing $40 Million Funding Deal
Argo Blockchain shares experienced a significant increase of 16% following the announcement of a non-binding term sheet for up to $40 million in senior secured convertible loans.
Key Details of the Funding Deal
The agreement, signed on February 25, includes an initial $15 million tranche and up to $25 million more over 18 months. The funding will be utilized to upgrade Argo Blockchain’s Bitcoin mining fleet in Quebec, Canada, strengthen its balance sheet, and explore potential mergers and acquisitions opportunities.
Terms of the Loans
The loans will have an 8% interest rate and a 25% conversion premium based on Argo Blockchain’s share price prior to signing. Additionally, investors will receive warrants equal to 30% of the loan amount at a premium price.
Investor Details and Board Representation
Although the specific investors backing the funding are not disclosed, Argo Blockchain mentions that the deal is supported by up to three multinational institutional investors. These investors will be granted three board seats once the agreement is finalized and approved by shareholders.
“The Financing is expected to be funded by up to three multinational institutional investors and will include 30% warrant coverage, also at a premium to the closing price. The Investor Group will have three seats on the board upon completion of definitive documents and shareholder approval.”
Market Reaction and Future Plans
Following the announcement, Argo Blockchain’s shares rose 16% to $0.45 in pre-market trading. Chairman Matt Shaw commented that the deal will “allow profitable growth at Argo and strengthen our balance sheet.”
Tips for investors interested in the cryptocurrency mining sector:
- Monitor Bitcoin mining companies’ financial performance and strategic partnerships.
- Keep an eye on mergers and acquisitions in the industry, as they can impact market trends.
- Stay informed about cryptocurrency market fluctuations and their potential impact on mining companies.
For more news and updates on the cryptocurrency market, visit Global Crypto News.
