Argo Blockchain, a Bitcoin mining company, has reached an agreement with Galaxy Digital to sell its Helios mining facility in Texas for $65 million. This would allow Argo Blockchain to avoid filing for bankruptcy protection.
As a result of the sale and refinancing arrangement with Canada-listed crypto-investor Galaxy Digital Holdings, London-listed shares of Argo, which had fallen 92% so far this year, were up 120% to 8.5 pence in early trading.
The firm stated in a statement that the transactions involve the refinancing of loans with a new $35 million credit with Galaxy, which would assist decrease its overall indebtedness by $41 million.
“The transaction will accelerate the expansion of Galaxy’s bitcoin mining operations and services, provide access to tax-efficient mining infrastructure and reduce reliance on third-party hosting providers,” says Galaxy Digital.
Helios, which has a campus that is roughly 160 acres in size and began operations in May 2022, now has a workforce of approximately 40 individuals who are responsible for managing day-to-day operations.
Galaxy claims it wants to be a leading decentralized network node. In our two years of Bitcoin mining, we’ve come a long way, and the purchase of Helios marks a new milestone that will improve the company’s operational size and range of solutions, resulting in long-term benefits for the largest decentralized digital asset network and for its shareholders.
Helios will serve as Galaxy’s showcase proprietary mining plant, and the company plans to keep the full operational staff. With the addition of hosting services for external bitcoin miners at Helios, the blockchain pioneer will gain a new source of income.
Moreover, Galaxy has also vowed to fund the many community commitments Argo has made since beginning construction of Helios.
