Crypto-mining company Argo Blockchain is selling a facility

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Crypto mining company Argo Blockchain has made transactions allowing it to continue operating.

The company said in a Wednesday, Dec. 28 press release that its subsidiary would sell its Helios bitcoin mining facility in Texas to Galaxy Digital Holdings for $65 million and refinance its asset-backed loans with a new $35 million loan. Galaxy dollars.

This transaction with Galaxy is transformational for Argo and benefits the company in several ways, Argo CEO Peter Wall said in the release. It reduces our debt by $41 million ($34 million) and provides us with a stronger balance sheet and improved liquidity to help ensure continued operations during the current bear market.

Argo said in an October 31 press release that it was exploring financing opportunities and that if it was unable to secure additional financing to provide it with working capital, it would become cash flow negative and expected to reduce. or cease its activities.

With the recently announced transactions, Argo will reduce its total indebtedness by $41 million and simplify its operating structure, according to Wednesday’s press release.

Argo will retain ownership of its fleet of bitcoin mining machines, which represents approximately 2.5 PE/s of total hashrate capacity, Wall said in the statement.

For Galaxy, the transaction will accelerate the expansion of its bitcoin mining operations and services, provide access to tax-efficient mining infrastructure, and reduce reliance on third-party hosting providers, Galaxy said in a press release. Wednesday.

The Helios facility will join another planned bitcoin mining facility to be owned and operated by Galaxy, as the company inaugurated its first proprietary mining site earlier this year, according to the statement.

Galaxy aspires to be one of the most trusted nodes of the decentralized future, Galaxy President and Chief Investment Officer Chris Ferrarosa said in the statement. The acquisition of Helios represents another step in our two-year journey in bitcoin mining that increases our scale of operations and the breadth of our solutions, creating lasting value for the largest mining network. decentralized digital assets and for shareholders.

As PYMNTS reported in March, crypto mining is an industry whose economy dominates bitcoin and many of the cryptocurrencies that have followed it, including payments-focused ones such as litecoin and bitcoin cash.

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