To the tune of $65 million, the Helios facility was sold by Argo Blockchain on Dec 28.
Galaxy will also grant a fresh $35 million equipment financing loan.
After much deliberation, cryptocurrency mining company Argo Blockchain has decided to sell its flagship mining facility Helios in order to weather the current bear market.
To the tune of $65 million, the Helios facility was sold by Argo Blockchain on December 28 to Mike Novogratz’s crypto investment business Galaxy Digital. Furthermore, Argo has been using its mined Bitcoin to pay off Galaxy’s debt. To further assist the financially strained miner, Galaxy will also grant a fresh $35 million equipment financing loan to Argo.
Argo Blockchain CEO Peter Wall stated:
“We’ve used the proceeds of that sale in a new Galaxy loan to pay off the debt that we owed to NYDIG and a tiny bit to another secured lender.”
Striving to Survive
Moreover, The CEO of Argo has said that the new transactions are designed to lower the company’s overall debt by $41 million while also improving the company’s liquidity and operational structure. Despite the bear market, Wall said the transaction was the “only viable path forward” because of the high energy expenses and low Bitcoin price.
Furthermore, the CEO stressed that despite Argo selling Helios, the company has not yet sold any of its mining equipment. Wall said that Argo has inked a deal to remain operating its mining equipment at the Helios site, so they will continue to mine there.
Argo announced Helios in May 2022, thus this agreement follows close on its heels. Helios station in Dickens County is the biggest Argo mining operation, with support for 200 MW of power.
