• Argo Blockchain has announced a deal with Galaxy Digital to sell its flagship mining facility Helios for $65 million.
• The transaction will reduce the company’s total debt by $41 million and improve liquidity and operating structure.
• Argo has signed an agreement to keep their mining machines running at Helios and will continue their mining operations.
Argo Blockchain, a cryptocurrency mining firm, has announced a deal with Galaxy Digital, a crypto investment firm owned by Mike Novogratz, to sell its flagship mining facility Helios for $65 million. The transaction is expected to reduce Argo’s total debt by $41 million and improve the miner’s liquidity and operating structure.
The sale of the Helios facility comes at a time when the firm is facing pressure from high energy costs coupled with the low Bitcoin price. According to Argo’s CEO Peter Wall, this was the “only viable path forward” through the bear market. He noted that Argo has already been cashing its mined Bitcoin to reduce the loan to Galaxy, while Galaxy will also provide Argo with a new $35 million equipment finance loan.
The news of the sale of the Helios facility has been welcomed by the Argo community as a move that will help the firm remain viable in the long run. Wall also noted that Argo has signed an agreement with Galaxy to keep their mining machines running at Helios and will continue their mining operations.
The sale of the Helios facility is part of a larger strategy by Argo to reduce its debt and improve liquidity and operating structure. The firm has also been cashing its mined Bitcoin to reduce the loan to Galaxy, while Galaxy has provided the firm with a $35 million equipment finance loan to help reduce its debt.
The move is seen as a positive step by Argo, as it will help the miner weather the bear market. It is hoped that the sale of Helios will ensure that Argo remains viable in the long run and that the firm can continue to grow and expand its operations.