Shares in Argo Blockchain jumped as much as 16% in early trade on Monday as the London-listed cryptocurrency miner said it had secured $40m in debt financing.

The initial tranche of the Financing would be $15m with follow on tranches of up to $25m advanced over the next 18 months, the firm said.

The proceeds will be used to refresh Argo’s Baie Comeau, Quebec mining fleet, to strengthen its balance sheet, and to assess acquisition possibilities.

The finance, which is funded by three unnamed multinational institutional investors, will carry an interest rate of around 8%. Argo has granted the investor group three seats on the company board as well as a a 20-day exclusivity period and has agreed to pay a break fee of $150,000.

Chairman Matt Shaw said: “We believe that this financing will allow profitable growth at Argo and strengthen our balance sheet.

“The Argo team is working closely with the investor group to clear due diligence and refine our business plan in a timely manner.”

Despite the share rise, Argo’s stock remains down 12% since the start of the year.

It comes as the boss of Argo Blockchain stepped down from the crypto mining business last week as it battles to build a recovery in its share price.

Thomas Chippas announced he would stepping down from his position as CEO in January, effective 28 February 2025, after barely more than a year in the role.

Argo was warned in January that it may be kicked out of the Nasdaq over its sinking share price.

The company’s American Depositary Shares (“ADS”) listed on the Nasdaq to fall below $1.00 for 30 consecutive business days, causing it to breach the minimum bid price requirement. The company has been given until July to see its share price recover before trading will be suspended.

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