Bitcoin Miner Argo Blockchain Sells Helios Facility to Galaxy Digital for $65 Million, Galaxy to Host Argo’s ASIC Fleet in Texas

After the publicly-listed bitcoin mining steadfast Argo Blockchain suspended trading connected Nasdaq and the London Stock Exchange, the institution said it would travel up the adjacent time with an announcement. The pursuing day, connected Dec. 28, 2022, Argo elaborate it is selling its Helios installation to Galaxy Digital for $65 million, and the financially troubled concern plans to refinance asset-backed loans with a caller $35 cardinal indebtedness that stems from Galaxy.

Galaxy Digital Purchases Texas Data Center From Argo Blockchain, Company Hopes Transactions Will ‘Enable the Company to Continue Operations’

Galaxy Digital is giving Argo Blockchain (Nasdaq: ARBK) immoderate caller liquidity, according to a property announcement published by Argo connected Wednesday, Dec. 28, 2022. Argo elaborate that it is selling its Helios installation to Galaxy for $65 million.

Galaxy has besides agreed to big Argo’s fleet of Bitmain-manufactured S19J Pro bitcoin miners astatine the Helios facility. The Helios installation is located successful Dickens County, Texas and the transaction betwixt Argo and Galaxy is expected to settee connected Dec. 28.

Argo further disclosed that Galaxy is providing the steadfast with a indebtedness of $35 cardinal with a word of 36 months. The financing is backed by a collateral bundle of Argo’s machines located astatine the Helios installation successful Texas and immoderate successful Quebec.

The collateral bundle equates to 23,619 Bitmain S19J Pro bitcoin mining machines. A fig of Argo’s debts are shown to beryllium tied to the steadfast NYDIG, according to the announcement published connected Wednesday greeting (ET).

Argo insists the transactions with Galaxy volition “strengthen Argo’s equilibrium sheet, amended Argo’s liquidity position, and alteration the institution to proceed operations.” Argo’s banal jumped connected the news, and it accrued 13.55% from $0.59 to the existent $0.67 per stock astatine 11:30 a.m. (ET) connected Dec. 28.

The publicly-listed bitcoin miner besides acknowledged the suspension of ARBK stock trading connected Dec. 27 and elaborate that ARBK trades connected Nasdaq and the London Stock Exchange were present open. The institution noted that its Canadian assets, but for “certain mining machines and different assets located successful Quebec” that are backing its caller loan, are “not affected by the agreements with Galaxy.”

Further, Argo besides disclosed that its earning results from the 3rd 4th volition not beryllium reported “in airy of the transaction with Galaxy,” the bitcoin mining cognition concluded. Argo Blockchain is 1 of a fistful of publicly-listed bitcoin mining operations that person dealt with fiscal shortcomings during 2022’s crypto winter.

What bash you deliberation astir Argo Blockchain’s woody with Galaxy Digital? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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