• Argo Blockchain (ARBK) 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 Michael Novogratz’s crypto-focused financial services firm, which will be secured by Argo’s mining equipment.
• The transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October.
Argo Blockchain (ARBK), a bitcoin miner, recently 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. In addition to this, the miner also secured a new $35 million loan from Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment. This transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October.
The sale of the Helios mining facility and the loan from Novogratz’s firm will provide Argo with the necessary capital to help the miner stay afloat in the bear market and reduce its debt load. Argo’s CEO Peter Wall expressed his relief, saying “This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.” Furthermore, Argo will also enter into a two-year hosting agreement with Galaxy, which will secure a place for Argo’s computers to keep mining at the Helios facility.
Galaxy Digital’s President and Chief Investment Officer, Chris Ferraro, said that they structured the deal with Argo to boost the miner’s balance sheet and capital structure. He added that, when Argo 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.” Following the news, Argo’s shares more than doubled in early London Stock Exchange trading.
The news of Argo’s successful acquisition of $65 million from the sale of its mining facility and the $35 million loan from Michael Novogratz’s firm has come as a huge relief for the company, which was in danger of filing for bankruptcy protection. With the sale of its mining facility and the loan from Novogratz’s firm, Argo will be able to reduce its debt load and stay afloat in the bear market. Furthermore, the two-year hosting agreement with Galaxy will also secure a place for Argo’s computers to keep mining at the Helios facility. The news of Argo’s successful acquisition saw its shares more than double in early London Stock Exchange trading.
