Argo Blockchain sells top mining facility to Galaxy Digital for $65M
Cryptocurrency mining agency Argo Blockchain has taken a troublesome determination to promote its flagship mining facility Helios with a purpose to survive the continued bear market.
Argo Blockchain CEO Peter Wall formally announced on Dec. 28 a cope with Mike Novogratz’s crypto funding agency Galaxy Digital to promote the Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to cut back the mortgage to Galaxy.
Moreover, Galaxy can even present Argo with a brand new $35 million tools finance mortgage to assist the troubled miner scale back its debt. “We’ve used the proceeds of that sale in a brand new Galaxy mortgage to repay the debt that we owed to NYDIG and a tiny bit to a different secured lender,” Wall famous.
The brand new transactions intention to cut back Argo’s complete debt by $41 million and enhance liquidity and working construction, permitting the agency to proceed its mining operations, the CEO stated.
Wall famous that the deal was the “solely viable path ahead” by the bear market amid strain from excessive power prices coupled with the low Bitcoin value.
The CEO additionally emphasised that regardless of Argo promoting Helios, the agency has not bought any of its mining machines. “These are going to proceed to mine at Helios facility,” Wall stated, including that Argo has additionally signed an settlement to maintain working their mining machines at Helios. He said:
“Staying at Helios can even permit us to proceed to entry energy by the Texas grid and take part within the ancillary companies, that are offered by Ercot.”
The deal comes simply six months after Argo formally launched Helios in Could 2022. Situated in Dickens County, Helios facility is the most important Argo mining facility, supporting 200 megawatts (MW) of electrical energy. Compared, one other Argo facility, Baie Comeau, operates round 15 MW.
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The information comes amid Argo’s wrestle to safe financing after failing to lift $27 million by way of subscription for extraordinary shares. In October, Argo stated that it was liable to closing as a consequence of failing to lift new financing. In mid-December, Argo introduced that it was negotiating to promote its belongings and making an attempt to “have interaction in an tools financing transaction” with a purpose to keep away from submitting for chapter.
Argo didn’t instantly reply to Cointelegraph’s request for remark.