Block reward mining firm Argo Blockchain (NASDAQ: ARBK) has offered its Helios mining facility to Galaxy Digital (NASDAQ: BRPHF) for $65 million. The miner additionally secured a $35 million mortgage from the digital asset-focused funding agency because it struggles with the bear market.
In a press launch, Argo confirmed that it had entered definitive agreements to promote the Helios facility and its actual property in Dickens County, Texas, to the Mike Novogratz-owned agency.
Galaxy Digital additionally prolonged a $35 million credit score facility to the miner with an preliminary time period of 36 months. Argo put up over 23,000 Bitmain S19J Professional mining machines as collateral and different machines in its Quebec, Canada, information facilities.
As the brand new proprietor of the Helios facility, Galaxy will proceed to mine BTC with Argo’s mining machines, receiving a internet hosting charge for its companies. Argo argues this can mitigate any mining rigs’ downtime from the sale of the Helios facility.
Argo will channel the money it receives from the sale, and a few money from its new mortgage, to repay all its present money owed. The corporate says that the loans, coupled with prepayment curiosity and different charges, quantity to $84 million owed to NYDIG and $1 million to North Mill Industrial Finance.
“This transaction with Galaxy is a transformational one for Argo and advantages the corporate in a number of methods. It reduces our debt by $41 million (£34 million) and supplies us with a stronger stability sheet and enhanced liquidity to assist guarantee continued operations by means of the continuing bear market,” CEO Peter Wall commented.
The sale of the Helios facility is not going to have an effect on Argo’s different operations, the corporate said. It now plans to refocus its efforts on optimizing its operations at its two information facilities in Quebec, which collectively churn out 140 PH/s of hash rate.
Argo has been struggling to lift capital this 12 months, and two weeks in the past, it introduced that whereas it was in search of to restructure, it couldn’t assure that it would avoid bankruptcy. In October, the corporate attempted to lift $27 million by issuing extra shares to an unnamed investor. Just a few weeks later, it announced that the fundraising had fallen by means of, which despatched its shares tumbling by over 70% in a single day.
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