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After publicly traded bitcoin miner Argo Blockchain suspended trading on Nasdaq and the London Stock Exchange, the company said it would follow up the next day with an announcement. The next day, on December 28, 2022, Argo said it is selling its Helios facility to Galaxy Digital for $65 million, and the financially troubled business plans to refinance its asset-backed loans with a new $35 million loan originated by Galaxy.
Galaxy Digital is providing Argo Blockchain (Nasdaq: ARBK) with some fresh liquidity, according to a press release published by Argo on Wednesday, December 28, 2022. Argo detailed that it is selling its Helios facility to Galaxy for $65 million.
Galaxy has also agreed to host Argos’ fleet of Bitmain-manufactured S19J Pro bitcoin miners at the Helios facility. The Helios facility is located in Dickens County, Texas, and the transaction between Argo and Galaxy is expected to close on December 28.
Argo further revealed that Galaxy is providing the firm with a $35 million loan with a term of 36 months. The financing is supported by a security package of Argos machines located at the Helios plant in Texas and some in Quebec.
The security package is equivalent to 23,619 Bitmain S19J Pro bitcoin miners. A number of Argo’s debts are shown to be linked to the firm NYDIG, according to the announcement published Wednesday morning (ET).
Argo insists that the transactions with Galaxy will “strengthen Argo’s balance sheet, improve Argo’s liquidity position and enable the company to continue operations.” Argo’s stock jumped on the news, rising 13.55% from $0.59 to a current $0.67 per share at 11:30 a.m. (ET) on December 28.
The listed bitcoin miner also acknowledged the suspension of ARBK stock trading on December 27 and detailed that ARBK trades on Nasdaq and the London Stock Exchange were now open. The company noted that its Canadian assets, apart from “certain mining machinery and other assets located in Quebec” that support the new loan, are “not affected by the agreements with Galaxy.”
Furthermore, Argo also disclosed that its third quarter earnings results will not be reported “in light of the transaction with Galaxy,” the bitcoin mining operation concluded. Argo Blockchain is one of a handful of publicly traded bitcoin mining operations that have dealt with financial shortfalls during 2022’s crypto winter.
What do you think of Argo Blockchain’s deal with Galaxy Digital? Let us know what you think about this topic in the comments section below.
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