Argo Blockchain sells top mining facility to Galaxy Digital for $65M

Cryptocurrency mining agency Argo Blockchain has taken a tough choice to promote its flagship mining facility Helios with the intention 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 Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to scale back the mortgage to Galaxy.

Moreover, Galaxy may even present Argo with a brand new $35 million gear 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 purpose to scale back Argo’s whole debt by $41 million, 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 means of the bear market, amid strain from excessive vitality prices coupled with the low Bitcoin worth.

The CEO additionally emphasised that regardless of Argo promoting Helios, the agency has not offered 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 acknowledged:

“Staying at Helios may even permit us to proceed to entry energy by means of the Texas grid and take part within the ancillary providers, that are offered by Ercot.”

The deal comes simply six months after Argo formally launched Helios in Might 2022. Positioned in Dickens County, Helios facility is the biggest Argo’s mining facility, supporting 200 megawatts (MW) of electrical energy. As compared, one other Argo’s facility, Baie Comeau, operates round 15 MW.

Associated: 100%: Public Bitcoin miners sold almost everything they mined in 2022

The information comes amid Argo struggling to safe financing after failing to lift $27 million by way of subscription for abnormal shares. In October, Argo stated that it was at risk of closing on account of failing to lift new financing. In mid-December, Argo introduced that it was negotiating to sell its assets and making an attempt to “have interaction in an gear financing transaction” with the intention to keep away from submitting for chapter.

Argo didn’t instantly reply to Cointelegraph’s request for remark.