Troubled Miner Argo Blockchain Cuts Debt by $41M by Selling Helios Mining Facility to Galaxy Digital
- Argo Blockchain has signed a $65 million deal with Galaxy Digital to sell its Helios facility in Texas.
- The transaction includes real estate and other assets in Dickens County, Texas.
- Galaxy Digitals will also provide $35 million in asset-oriented loans to cryptocurrency miners.
- Argo estimates the deal will reduce debt by $41 million and make operations easier.
In a favorable market environment, crypto mining company Argo Blockchain has entered into an agreement with crypto financial services company Galaxy Digital to sell its Helios facility in Texas for $65 million. Argo said it would sell the facility on behalf of its subsidiary, according to a blog post.
The transaction also includes the acquisition of real estate and other assets in Dickens County, Texas.
Meanwhile, Galaxy Digitals will offer a new $35 million asset-oriented loan to cryptocurrency miners. This loan includes an initial 36-month term.
Argo will be financed through several collateral, including 23,619 Bitmain S19J Pro mining machines in Helios and other devices in Argo’s Canadian data centers.
Argo wants to avoid bankruptcy in trading
Cryptocurrency miners believe the deal will help them in their efforts to avoid bankruptcy. As reported, a portion of the cash and loan proceeds from the sale of Helios will be used to pay down existing debt, prepaid interest and other fees.
Following this repayment, the Company will receive approximately $6 million from a collateral account maintained by NYDIG ABL LLC.
According to Argo, the deal will reduce debt by $41 million and make operations easier.
In response to the development, Argo CEO Peter Wall said the deal would help transform the company for the benefit of Argo.
“This transaction with Galaxy is transformative for Argo and will benefit the company in several ways. and enhanced liquidity to ensure continued operations through continued operations.It’s a bear market,” Wall said. The agreement is expected to be signed today. Meanwhile, Galaxy Digitals is pursuing fixed-price power acquisition contracts so that Agro can enjoy better rates.
on the flipside
- Algo shares, which fell 92% this year, are up more than 90% after the sale deal with Galaxy Digital Holdings was made public.
- Argo Blockchain resumes trading on NASDAQ today after being temporarily suspended yesterday.
why you should care
The current market is wreaking havoc on cryptocurrencies, including mining companies. As a result, some companies, such as Core Scientific, have announced bankruptcy. However, this recent development may alleviate some of the financial woes of Argo Blockchain, one of the world’s top mining companies, during this difficult time.
Read more stories about cryptocurrency mining companies.
Bitcoin Miner Core Scientific Files For Bankruptcy, Continues Mining While Repaying Debtors
Argo Blockchain asks Nasdaq to suspend stock trading due to restructuring
Watch the original on DailyCoin