Crypto mining company Argo Blockchain is selling the facility
Crypto mining company Argo Blockchain has made transactions so that it can continue operations.
The firm said on Wednesday (December 28) press release that the subsidiary will sell its Helios bitcoin mining facility in Texas to Galaxy Digital Holdings for $65 million and refinance its asset-backed loans with a new $35 million loan from Galaxy.
“This transaction with Galaxy is a transformational transaction for Argo and benefits the company in several ways,” Argo CEO Peter Wall said in the release. “It reduces our debt by $41m (£34m) and gives us a stronger balance sheet and improved liquidity to ensure continued operations through the ongoing bear market.”
Argo had said in a 31 Oct press release that it was exploring financing options and that if it were unsuccessful in completing additional financing to provide it with working capital, it would become cash flow negative and would have to curtail or cease operations.
With the newly announced transactions, Argo will reduce its total debt by $41 million and simplify its operating structure, according to Wednesday’s press release.
“Argo will maintain ownership of its fleet of bitcoin miners, which represent approximately 2.5 EH/s of total hashrate capacity,” Wall said in the release.
For Galaxy, the transaction will accelerate the expansion of bitcoin mining and services, provide access to tax-efficient mining infrastructure and reduce reliance on third-party hosting providers, Galaxy said in a Wednesday press release.
The Helios facility will join another planned bitcoin mining facility to be owned and operated by Galaxy, as the firm broke ground on its first proprietary mining facility earlier this year, according to the release.
“Galaxy hopes to be one of the most trusted nodes in the decentralized future,” Galaxy President and Chief Investment Officer Chris Ferraro said in the release. “The acquisition of Helios represents a new phase in 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 shareholders.”
As PYMNTS reported in March, crypto mining is an industry whose economy is dominated by bitcoin and many of the cryptocurrencies that came after it – especially the payment-focused ones, such as litecoin and bitcoin cash.
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