Penny Stock ARBK Closed Up 151.72% On News That Galaxy Digital Will Acquire Its Bitcoin Mining Operation.

Penny Stock ARBK, Closed Up 151.72%

After News That Galaxy Digital Will

Acquire It’s Bitcoin Mining Operation.


Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK; OTCQX:ARBKF) ("Argo") became the second penny stock in two weeks to see a massive move up in price soon after being demoted to trading on the OTC Market, after being suspended by a bigger board exchange.


Yesterday we reported on Starry Group Holdings, Inc., (OTC PINK:STRY) recently being suspended from trading by the NYSE. In that STRY news update, we mentioned that STRY first saw a steep decline after the announcement, which was then followed by a recovery up 500% from the low in just two weeks. In the case of ARBK, the stock was announced as de-listed from NASDAQ just yesterday but it did not see a steep decline prior to running up.


Argo Blockchain plc Came To An Agreement To Have Its Bitcoin Mining Helios Operation Acquired By Galaxy Digital:

The reason for ARBK avoiding a major sell-off soon after being suspended from NASDAQ is that earlier today, Argo Blockchain plc and Galaxy Digital each announced that the companies came to an agreement in which Galaxy Digital will acquire Argo’s Bitcoin mining facility Helios for $65 million. According to the terms of the deal Galaxy will also be acquiring other related operations from Argo Blockchain plc and provide Argo with a $35 million loan as the company restructures. The terms of this deal are interesting because as mentioned in our recent explanation of shell stocks, shell stocks are those in which a company has sold off its assets or business, leaving nothing behind but the ticket symbol that continues to trade without any significant business. It would be interesting to see if ARBK were to fully become a relative shell after this deal because that would make it one of the most highly transparent shells on the market due to the previously filed documentation that was required by NASDAQ in order to previously remain listed. In so doing, if they do end up selling all assets, the stock would be a very appealing reverse merger candidate but it appears more likely that the company will complete a run of the mill restructuring and move the business in a new direction rather than go the asset sales followed by penny stock reverse merger rout, especially being that the company will continue to.

The deal as known will allow Galaxy Digital to continue to build out its growing Bitcoin mining operations while also allowing Argo Blockchain to remain solvent by avoiding bankruptcy, continue to maintain ownership of its mining units in Dickens County, Texas and have cash on hand to enact full restructuring plans.

Due to the cryptocurrency market downturn over the course of almost this entire year, declining prices have hit the Bitcoin mining community hard, causing numerous bitcoin mining operations to fall into bankruptcy. The Argo deal, according to the company, will allow Argo to maintain enough of a capital balance to weather the bear market period.

Read other articles →



November 2034

January 2025

June 2024

February 2024

December 2023

October 2023

September 2023

August 2023

June 2023

February 2023

January 2023

December 2022

November 2022

October 2022

September 2022

June 2022

February 2022

January 2022

July 2021

March 2021

February 2021

January 2021

December 2020

November 2020

October 2020

September 2020

August 2020

July 2020

June 2020

May 2020

April 2020

March 2020

February 2020

January 2020

December 2019

November 2019

October 2019

September 2019

August 2019

July 2019

June 2019

May 2019

April 2019

March 2019

February 2019

January 2019

December 2018

November 2018

October 2018

September 2018

August 2018

July 2018

June 2018

May 2018

April 2018

March 2018

February 2018

January 2018

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

December 2016

November 2016

September 2016

August 2016

July 2016

June 2016

May 2016

April 2016

March 2016

February 2016

January 2016

December 2015

November 2015

October 2015

September 2015

August 2015

July 2015

June 2015

May 2015

April 2015

March 2015

February 2015

January 2015

December 2014

November 2014

October 2014

September 2014

August 2014

July 2014

June 2014

May 2014

April 2014

March 2014

February 2014

January 2014

December 2013

November 2013

October 2013

September 2013

August 2013

July 2013

June 2013

May 2013

April 2013

March 2013

February 2013

January 2013

December 2012

November 2012

October 2012

September 2012

June 2011

PCI DSS Compliant Stripe Payments GoDaddy Verified GoDaddy SSL Secured Visa MasterCard American Express Discover PayPal accepted