Argo Blockchain Stock Rallies On Potential $40 Million Investment To Upgrade Bitcoin Mining Fleet – Retail Sentiment Bullish

synopsis

Argo Blockchain (ARBK) shares surged more than 30% in mid-day trading Monday after the Bitcoin miner announced it had entered into a non-binding term sheet for up to $40 million in senior secured convertible loans.

The company said the capital infusion would be used to upgrade its mining fleet at its Baie-Comeau facility in Quebec, bolster its balance sheet, and evaluate merger and acquisition opportunities.

Under the proposed deal, an initial tranche of $15 million would be disbursed, with additional funding of up to $25 million available over the next 18 months. The debt financing carries an interest rate of approximately 8%.

Argo said the financing is expected to come from up to three multinational institutional investors and will include 30% warrant coverage at a premium to the closing price.

As part of the agreement, Argo has granted the investor group a 20-day exclusivity period, with potential extensions depending on progress. The company also agreed to a $150,000 break fee under certain conditions.

Argo Blockchain retail sentiment and message volume on March 3 as of 12:55 p.m. ET | Source: Stocktwits

Retail sentiment on Stocktwits around Argo’s stock surged into the ‘extremely bullish’ zone from ‘neutral’ a day ago, as chatter jumped to ‘extremely high’ from ‘extremely low’ levels.

Some investors took the opportunity to cash in on the rally.

Despite the stock's sudden spike, it remains down 13% year-to-date and has lost more than 77% over the past year.

Argo Blockchain has recently undergone a change in its management. Former CEO Thomas Chippas stepped down on Feb. 28.

Moreover, the company received a Nasdaq delisting warning in January due to its prolonged stock price decline.

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