Argo Blockchain sold the Helios mining facility in Texas

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UK-based Argo Blockchain has sold its Helios mining facility in Texas to crypto investment firm Galaxy Digital for $65 million. The miner will also receive a new $35 million loan secured by Argo’s mining equipment from well-known investor Michael Novogratz’s crypto-focused financial services firm. Argo CEO Peter Wall said: “Over the past few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique Texas power grid… This agreement with Galaxy achieves all of these goals , and it allows us to live to fight another day.” Galaxy has also agreed to host the Bitmain S19J Pro fleet on Helios, while Argo retains ownership of all the machines. They will be used as collateral for the new loan. Argo went on to say that it had agreed with its other subsidiaries “to guarantee the delivery of certain additional collateral for the financing.” In recent months, bankruptcies have been alive in the Bitcoin mining industry as the market experiences significant downturns due to rising energy prices and falling miner incomes, which have tightened margins and increased profit losses. Argo had been dealing with cost increases and pressure margins as Bitcoin prices fell and power costs rose at Helios. Wall further stated, “This transaction with Galaxy is a transformational transaction for Argo and benefits the company in several ways. It reduces our debt by $41 million and gives us a stronger balance sheet and improved liquidity to ensure continued operations through the ongoing bear market.”Argo Blockchain’s stock has fallen more than 90 percent this year due to rising energy costs and falling Bitcoin prices. To resolve its financial difficulties, the company began selling off its Bitcoin reserves in June, with the proceeds going towards operating expenses. Argo also planned a $27 million fundraiser earlier this year, but it fell through in October. Galaxy Digital plans to enter into “a fixed price power purchase agreement with a licensed retail supplier for the required electricity.” Argo, in turn, will have access to the stream at a predetermined price and will pay Galaxy a hosting fee.Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash