Argo Blockchain Secures Financing and Acquisition to Boost Hashrate
Why we think this is good
The RNS announcement outlines a positive financing package for Argo Blockchain, including a $10 million investment consisting of a $7 million convertible loan and $3 million equity investment. This financing, along with the acquisition of GEM Mining's assets, is expected to more than double Argo's hashrate and increase overall Bitcoin production, which should have a positive impact on the company's financials. While the transaction is subject to several conditions, including shareholder and regulatory approvals, the financing package and expansion opportunity are significant positive developments for the company.
Key Points
- Argo Blockchain to acquire assets of GEM Mining LLC for up to $21.7 million
- Acquisition expected to more than double Argo's hashrate and increase Bitcoin production
- Argo secures $10 million financing package, including $7 million convertible loan and $3 million equity investment
- Transaction subject to shareholder and regulatory approvals
Summary
Argo Blockchain has entered into non-binding term sheets to acquire substantially all of the assets of GEM Mining LLC and its affiliates for up to $21.7 million, to be satisfied by the issue of new ordinary shares. The acquisition is expected to more than double Argo's hashrate and provide the company with access to GEM's hosting arrangements, driving efficiencies and increasing overall Bitcoin production. Argo has also secured a $10 million investment, consisting of a $7 million secured convertible loan and a $3 million equity investment, which will provide the company with growth capital. The transaction is subject to shareholder approval, regulatory approvals, and other conditions.