• Argo Blockchain (ARBK) has avoided filing for bankruptcy protection after agreeing to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million.
• The miner will also get a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment.
• Argo will also enter into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility.
Argo Blockchain, one of the world’s largest Bitcoin miners, has managed to avoid filing for bankruptcy protection after agreeing to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. This new deal will also provide Argo with a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment.
The transaction was structured to bolster Argo’s balance sheet and capital structure, helping the miner to stay afloat during the bear market. This is especially important, given that the miner was in a precarious situation after a previous deal for $27 million in funding fell through in October.
In addition to the sale of the Helios mining facility and the loan from Galaxy Digital, Argo will also enter into a two-year hosting agreement with the firm. This will secure a place for Argo’s computers to keep mining at the Helios facility.
Speaking on the deal, Argo CEO Peter Wall said: “Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique power grid in Texas. This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.”
Chris Ferraro, president and chief investment officer at Galaxy, also commented on the transaction, saying: “When the miner kicked off its process, we were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities.”
The news of the deal sent Argo’s shares more than doubling in early London Stock Exchange trading, prompting a 24-hour suspension of trading in its Nasdaq-listed shares. This is a much-needed boost for the miner, which has been struggling to remain profitable in the bear market.
With this new deal, Argo has managed to secure its future and remain in the mining business, something that could have been impossible had it gone ahead with filing for bankruptcy protection. This deal with Galaxy Digital is a major step forward for the miner and will likely help to secure its future in the long run.