Billionaire Mike Novogratz’s Galaxy Digital is to buy Argo Blockchain’s main facility
Crypto investment firm Galaxy Digital is buying the main facility of Bitcoin (BTC) miner Argo Blockchain for $65 million.
According to Argo, billionaire Mike Novogratz’s crypto investment company is buying the mining facility known as Helios in Dickens Country, Texas, as well as providing the struggling company with a $35 million loan.
Argo was thrown into financial trouble when Bitcoin’s price fell this year. With the sale, Argo can avoid filing for bankruptcy protection.
Says Argo CEO Peter Wall,
“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. It also allows us to focus on optimize our operations with significantly lower Capex and Opex requirements.”
Helios, which began operations in May 2022, can operate up to 180 megawatts (MW) of mining capacity on the 160-acre campus. About 40 employees manage the day-to-day operations.
Galaxy praised the deal, saying it will bring significant growth to the mining industry.
Says Chris Ferraro, Galaxy President and Chief Investment Officer,
“Galaxy hopes to be one of the most trusted nodes in the decentralized future. The acquisition of Helios represents a new phase over our two-year journey in Bitcoin mining that increases our operational scale and breadth of solutions, creating sustainable value for the largest decentralized digital asset network and the shareholders.
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Featured image: Shutterstock/Philipp Tur
