The UK-based crypto mining company Argo Blockchain sells its Helios mining facility in Texas to crypto investment firm Galaxy Digital for $65 million.
Galaxy Digital will also provide Argo with an asset-backed loan with an initial duration of 36 months and a total principal amount of $35 million.
23,619 Bitmain S19J Pro mining rigs currently in use at Helios and a few rigs located in Argo’s Canadian data centers will serve as collateral for this financing.
Peter Wall, Argo blockchain’s CEO, stated, “This transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market.”
All existing debt, and other fees totaling about $84 million and $1 million owed to NYDIG and North Mill Commercial Finance, respectively, will be repaid with the amount received from the sale of Helios and a portion of the borrowings under the asset-backed loan.
Also Read: Argo Blockchain Taps NYDIG For Equipment Financing Loan
The miner will keep ownership of all its machines at the Texas facility and enter into a two-year hosting agreement with Galaxy. The hosting agreement enables Argo to maintain its mining equipment at Helios and minimize any downtime due to the facility’s sale.
Argo blockchain will not declare earnings figures for Q3 2022 at this time due to the deal with Galaxy. Argo must adhere to the regulatory filing requirements in its home market because the SEC has designated it as a foreign private issuer.
Argo blockchain said in October that it is looking into new financing options after failing to secure major funding from a key investor. In case it is unable to secure funding during this time, Argo declared it will have to scale back or perhaps stop operations.
