Troubled miner Argo Blockchain to reduce debt by $41 million by selling Helios mining facility to Galaxy Digital by DailyCoin
Troubled miner Argo Blockchain to reduce debt by $41 million by selling Helios mining facility to Galaxy Digital- Argo Blockchain has secured a $65 million deal with Galaxy Digital to sell its Helios facility in Texas.
- The deal includes property in Dickens County, Texas and other assets.
- Galaxy Digitals will also offer the crypto miner $35 million as an asset-oriented loan.
- Argo estimates that the deal will reduce debt by $41 million and further ease operations.
Amid prevailing market conditions, crypto mining company Argo blockchain has secured an agreement with Galaxy Digital, a crypto financial services company, to sell its Helios facility in Texas for $65 million. According to a blog post, Argo said it is selling the facility on behalf of its subsidiary.
The deal also involves buying property in Dickens County, Texas, and other assets.
Meanwhile, Galaxy Digitals is expected to offer the crypto miner a new asset-backed loan of $35 million. This loan has an initial term of 36 months.
Argo plans to get the loan through some of its collateral, including 23,619 Bitmain S19J Pro mining machines in Helios and some other units in Argo’s Canadian data centers.
Argo hopes to stave off bankruptcy with the deal
The crypto miner believes this deal will help in their efforts to avoid bankruptcy. As reported, the cash proceeds from the sale of Helios and a portion of the loan proceeds will be used to pay down existing debt, prepayment interest and other fees.
Following this repayment, the Company will receive approximately $6 million from an escrow account controlled by NYDIG ABL LLC.
According to Argo, the agreement will reduce debt by 41 million dollars and facilitate operations further.
Reacting to the development, Argo CEO Peter Wall said the deal would help transform Argo because of the benefits.
“This transaction with Galaxy is a transformational transaction for Argo and benefits the company in a number of ways. It reduces our debt by $41m (£34m) and gives us a stronger balance sheet and improved liquidity to help ensure continued operations through the ongoing operation. the bear market,” Wall said. The agreement is expected to expire today. Meanwhile, Galaxy Digitals is pursuing a fixed price PPA to enable Agro to enjoy a better price.
On the other side
- Argo’s shares, which have fallen 92% this year, surged more than 90% after the sale deal with Galaxy Digital Holdings became public.
- Starting today, Argo Blockchain will resume trading on NASDAQ, after being temporarily suspended yesterday.
Why you should care
The current market has wreaked havoc on crypto, including mining companies. As a result, some companies, such as Core Scientific, declared bankruptcy. However, this latest development may ease some of the financial problems for Argo Blockchain, one of the top mining companies in the world, in these challenging times.
Discover more stories about crypto mining companies:
Bitcoin Miner Core Science Files For Bankruptcy, Continues Mining While Repaying Debt Holders
Argo Blockchain asks Nasdaq to suspend trading of its shares due to restructuring
See the original on DailyCoin
