Argo Blockchain sells top mining facility to Galaxy Digital for $65M

Cryptocurrency mining steadfast Argo Blockchain has taken a hard determination to merchantability its flagship mining installation Helios successful bid to past the ongoing carnivore market.

Argo Blockchain CEO Peter Wall officially announced connected Dec. 28 a woody with Mike Novogratz’s crypto concern steadfast Galaxy Digital to merchantability Helios installation for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to trim the indebtedness to Galaxy.

Additionally, Galaxy volition besides supply Argo with a caller $35 cardinal instrumentality concern indebtedness to assistance the troubled miner trim its debt. “We’ve utilized the proceeds of that merchantability successful a caller Galaxy indebtedness to wage disconnected the indebtedness that we owed to NYDIG and a tiny spot to different secured lender,” Wall noted.

The caller transactions purpose to trim Argo’s full indebtedness by $41 million, amended liquidity and operating structure, allowing the steadfast to proceed its mining operations, the CEO said.

Wall noted that the woody was the “only viable way forward” done the carnivore market, amid unit from precocious vigor costs coupled with the debased Bitcoin price.

The CEO besides emphasized that contempt Argo selling Helios, the steadfast has not sold immoderate of its mining machines. “Those are going to proceed to excavation astatine Helios facility,” Wall said, adding that Argo has besides signed an statement to support moving their mining machines astatine Helios. He stated:

“Staying astatine Helios volition besides let america to proceed to entree powerfulness done the Texas grid and enactment successful the ancillary services, which are provided by Ercot.”

The woody comes conscionable six months aft Argo officially launched Helios successful May 2022. Located successful Dickens County, Helios installation is the largest Argo’s mining facility, supporting 200 megawatts (MW) of electricity. In comparison, different Argo’s facility, Baie Comeau, operates astir 15 MW.

Related: 100%: Public Bitcoin miners sold astir everything they mined successful 2022

The quality comes amid Argo struggling to unafraid financing aft failing to rise $27 cardinal via subscription for mean shares. In October, Argo said that it was astatine hazard of closing owed to failing to rise caller financing. In mid-December, Argo announced that it was negotiating to merchantability its assets and trying to “engage successful an instrumentality financing transaction” successful bid to debar filing for bankruptcy.

Argo did not instantly respond to Cointelegraph’s petition for comment.