Miner Argo, a Bitcoin mining and technology company, has sold its Texas facility to Galaxy Digital for $ 65 million.
About The Sales Details
Bitcoin mining company Argo Blockchain recently announced that it has reached a definitive agreement with Galaxy Digital for the sale of the Helios facility located in Dickens Country, Texas.
According to a statement made by Argo Blockchain, Galaxy’s facility agreement with Argo located on Helios (including mining machines) is worth $65 million. Galaxy will provide Argo Blockchain with an asset-based loan totalling $35 million, using 23,619 Bitmain S19J Pro mining machines located at Helios and certain machines located at data centers in Canada as collateral.
Argo Blockchain’s Struggle with Financial Difficulties
Argo Blockchain has faced a stock decline of more than 90% during the year due to rising energy costs day by day and falling Bitcoin prices. The company, which wanted to overcome financial difficulties, started to sell the Bitcoin reserves it had in June last year to cover operating expenses. Furthermore, they also tried to raise a $27 million fund-raiser, which failed last October. Most recently, in recent weeks, they requested the suspension of trading of their shares and unsecured promissory notes on the NASDAQ stock exchange.
Peter Wall, CEO of Argo Blockchain, said in a statement: “This transaction with Galaxy is a transformational one for Argo and benefits the company in several ways. It reduces our debt by $41 million (£34 million), and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market.”
In the latest announcement made by the company, it was stated that the cash proceeds from the sale of the Texas facility, along with part of the borrowings under the asset-based loan, will be used for existing debts and other payments.
After all these developments, Argo Blockchain will focus on growing and optimizing its operations in two completely low-cost hydroelectric-powered data centers located in Quebec.
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