Bitcoin Miner Argo Blockchain sells Helios Facility for Galaxy Digital for $65 million, Galaxy to Host Argo’s ASIC Fleet in Texas
The publicly-listed bitcoin mining company Argo Blockchain stopped trading on the London Stock Exchange and Nasdaq. The company stated that it would make an announcement the next day. Argo Blockchain announced that it was selling its Helios facility for $65 million to Galaxy Digital. The financially troubled company plans to refinance asset-backed loan with a new $35million loan that comes from Galaxy.
Galaxy Digital Purchases Texas Data Center from Argo Blockchain. Company Hopes Transactions will ‘Enable Company to Continue Operations’
According to Argo’s press release, Galaxy Digital has given Argo Blockchain (Nasdaq : ARBK) some liquidity. Argo stated that it will sell its Helios facility for $65 million to Galaxy.
Galaxy has also agreed that it will host Argo’s fleet S19J Pro bitcoin miners manufactured by Bitmain at the Helios facility. The Helios facility is in Dickens County Texas. The transaction between Argo & Galaxy is expected to settle Dec. 28.
Argo also disclosed that Galaxy provided the firm with a loan for $35 million, with a term up to 36 months. The collateral package includes Argo’s machines from the Helios facility in Texas, and some from Quebec.
The collateral package is equivalent to 23,619 Bitmain S19J pro bitcoin mining machines. According to an announcement published Wednesday morning (ET), a number of Argo’s debts are tied to NYDIG.
Argo insists that the transactions with Galaxy will “strengthen Argo’s balance sheet, improve Argo’s liquidity position and enable the company’s operations to continue.” The stock shot up on the news and reached $0.67 per share at 11:30 AM (ET) Dec. 28.
The publicly-traded bitcoin miner also acknowledged that ARBK share trading was suspended on Dec. 27, and stated that ARBK trades on Nasdaq or the London Stock Exchange were now open. The company stated that its Canadian assets, with the exception of “certain mining machines and assets located in Quebec” that back its new loan, were not affected by the agreements made with Galaxy.
Argo Blockchain also stated that third quarter earnings results will not be reported due to the Galaxy transaction. Argo Blockchain is one among a few publicly-listed bitcoin mining companies that has dealt with financial inequalities during the crypto winter 2022.
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