Argo Blockchain Sells Helios Mining Facility to Galaxy Digital for $65M
• Argo Blockchain has agreed to sell its Helios mining facility to Galaxy Digital for $65 million.
• As part of the deal, Galaxy will provide Argo with a new asset-backed loan in an aggregate principal amount of $35 million.
• The acquisition is part of Argo’s plan to stave off bankruptcy and cover all of its financial obligations.
Argo Blockchain, a crypto miner, has agreed to sell its Helios mining facility to Galaxy Digital, a digital asset and blockchain-centric company, for $65 million. This deal comes as Argo seeks extra capital to avoid filing for bankruptcy, and the company expects the acquisition to close on December 28th.
The deal between Argo and Galaxy includes a new asset-backed loan in an aggregate principal amount of $35 million (£29 million). The loan is expected to have an initial term of 36 months and will include a collateral package that includes 23,619 Helios Bitmain mining machines. Argo is expecting to use the cash proceeds from the Helios sale and some of its assets-backed loans to cover all of its financial obligations. This includes repaying all existing debt, repaying all outstanding amounts due under Argo’s existing mining contracts, and to fund any potential restructuring costs.
Argo Blockchain has been struggling with financial difficulties for some time now. In November, the company reported a net loss of £13.9 million for the nine months ending September 30th, compared to a net loss of £5.3 million in the same period last year. Additionally, the company has seen its market capitalization decline by over 70%, from a peak of £377 million in April to around £108 million today.
The acquisition of Helios is a critical step in Argo’s effort to prevent bankruptcy. With the additional capital, Argo will be able to better manage its debt and focus on expanding its mining operations. However, there is still a lot of uncertainty surrounding the company’s future. Argo’s ability to survive and thrive in the long-term will depend on its ability to secure additional capital, attract new customers, and improve its operational efficiency.