• Argo Blockchain (ARBK) has agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million.
• Argo 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’s shares more than doubled in early London Stock Exchange trading.
Argo Blockchain (ARBK) has come to an agreement with Galaxy Digital to avoid filing for bankruptcy protection. Argo will be selling its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for a total of $65 million.
The crypto miner was in a precarious situation after a deal for $27 million in funding fell through in October. In order to avoid filing for Chapter 11 bankruptcy, Argo had been looking for ways to continue mining through the bear market and reduce its debt load. This deal with Galaxy will enable Argo to do just that.
In addition to the sale of its mining facility, Argo will also receive a new $35 million loan from noted investor Michael Novogratz’s crypto-focused financial-services firm. This loan will be secured by Argo’s mining equipment.
Argo will also enter into a two-year hosting agreement with Galaxy, to ensure that Argo’s computers will have a secure place to keep mining at the Helios facility. This deal was structured to boost Argo’s balance sheet and capital structure.
The news of this deal has already had a positive effect on Argo’s stock, with shares more than doubling in early London Stock Exchange trading. As a result, Argo requested a 24-hour suspension of trading in its Nasdaq-listed shares.
This agreement between Argo and Galaxy will not only help the crypto miner avoid bankruptcy, but also strengthen its balance sheet and capital structure. It will also allow Argo to maintain access to the unique power grid in Texas, and secure a place for its computers to keep mining.