Bitcoin Miner Argo Blockchain Sells Helios Facility to Galaxy Digital for $65 Million, Galaxy to Host Argo’s ASIC Fleet in Texas
After the publicly-listed bitcoin mining firm Argo Blockchain suspended trading on Nasdaq and the London Stock Exchange, the company said it would follow up the next day with an announcement. The following day, on Dec. 28, 2022, Argo detailed it is selling its Helios facility to Galaxy Digital for $65 million, and the financially troubled business plans to refinance asset-backed loans with a new $35 million loan that stems from Galaxy.
Galaxy Digital Purchases Texas Data Center From Argo Blockchain, Company Hopes Transactions Will ‘Enable the Company to Continue Operations’
Galaxy Digital is giving Argo Blockchain (Nasdaq: ARBK) some fresh liquidity, according to a press announcement published by Argo on Wednesday, Dec. 28, 2022. Argo detailed that it is selling its Helios facility to Galaxy for $65 million.
Galaxy has also agreed to host Argo’s fleet of Bitmain-manufactured S19J Pro bitcoin miners at the Helios facility. The Helios facility is located in Dickens County, Texas and the transaction between Argo and Galaxy is expected to settle on Dec. 28.
Argo further disclosed that Galaxy is providing the firm with a loan of $35 million with a term of 36 months. The financing is backed by a collateral package of Argo’s machines located at the Helios facility in Texas and some in Quebec.
The collateral package equates to 23,619 Bitmain S19J Pro bitcoin mining machines. A number of Argo’s debts are shown to be tied to the firm NYDIG, according to the announcement published on Wednesday morning (ET).
Argo insists the transactions with Galaxy will “strengthen Argo’s balance sheet, improve Argo’s liquidity position, and enable the company to continue operations.” Argo’s stock jumped on the news, and it increased 13.55% from $0.59 to the current $0.67 per share at 11:30 a.m. (ET) on Dec. 28.
Le mineur de bitcoins coté en bourse a également reconnu la suspension de la négociation des actions ARBK le 27 décembre et a précisé que les transactions ARBK sur le Nasdaq et la Bourse de Londres étaient désormais ouvertes. La société a noté que ses actifs canadiens, à l’exception de «certaines machines minières et autres actifs situés au Québec» qui soutiennent son nouveau prêt, ne sont «pas touchés par les accords avec Galaxy».
En outre, Argo a également révélé que ses résultats du troisième trimestre ne seront pas publiés “à la lumière de la transaction avec Galaxy”, a conclu l’exploitation minière de bitcoins. Argo Blockchain est l’une des rares opérations minières de bitcoins cotées en bourse qui ont fait face à des lacunes financières pendant l’hiver crypto de 2022.
