Cryptocurrency

Argo Blockchain Agrees to Promote Helium Facility to Galaxy Digital for $65M

One of many many struggling crypto mining corporations – Argo Blockchain – will attempt to keep away from chapter by promoting its Helius facility to Mike Novogratz’s Galaxy Digital.

The deal can be price $65 million and goals to cut back the agency’s total money owed.

The Deal

Argo made the announcement earlier on December 28, informing that it’ll additionally refinance asset-backed loans with a brand new one from Galaxy Digital price $35 million with an preliminary time period of 36 months. By including the sale of Helius for $65 million, the mining firm stated this may cut back its total indebtedness by $41 million.

The transactions are anticipated to be accomplished by the top of the day. Galaxy has additionally agreed to host the fleet of Bitmain S19J Execs at Helius, whereas Argo will preserve possession of all machines. They are going to function the brand new mortgage’s collateral.

“Argo will preserve possession of its fleet of Bitcoin mining machines, which represents roughly 2.5 EH/s of complete hashrate capability. Our miners at the moment working at Helios will proceed to be hosted there by Galaxy, which is a high-quality, institutional participant within the Bitcoin mining area.” – stated the agency’s Chief Government, Peter Wall.

Argo stated the money circulate from the deal will permit it to “repay all present indebtedness, prepayment curiosity, and different charges of roughly $84 million and $1 million, owed to NYDIG ABL LLC and North Mill Business Finance, LLC, respectively.”

The mining firm added that solely a portion of its Canadian-based operations can be affected by the deal, together with “mining machines and different property situated in Quebec” for use as collateral for the asset-backed mortgage.

Argo’s Troubles

With the beginning of the bitcoin bear market earlier this 12 months, many miners started to really feel the ache nearly instantly, having to promote extra BTC than they mine to cowl the rising prices. The quickly growing hash fee and problem didn’t assist them both.

Argo was amongst these hit laborious, with inventory costs falling by over 50% after it introduced a unfavorable money circulate for a couple of consecutive quarters. The corporate failed to stipulate its This fall leads to right this moment’s assertion as a result of the UK FCA “requires semi-annual reporting of monetary outcomes,” and Argo is “designated by the SEC as a international non-public issuer and is required to adjust to regulatory submitting necessities in its dwelling market.”

However, Argo stated its shares ought to open for buying and selling on Nasdaq right this moment after the suspension request yesterday.

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