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Friday, February 3, 2023

Argo Blockchain Sells Its Best Mining Facility To Galaxy Digital For $65M

Argo Blockchain, a bitcoin mining startup, revealed that it has signed binding contracts with Galaxy Digital Holdings under which the miner will sell its Helios facility in Dickens County, Texas.

The arrangement, which also entails Galaxy hosting Argo’s mining equipment situated at Helios, is valued at $65 million (£54 million), according to a statement released by Argo Blockchain on Wednesday.

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In addition, Galaxy will give Argo a new asset-backed loan with a total principal amount of $35 million (£29 million) and an initial period of 36 months, utilizing specific equipment at Argo’s Canadian data centers and 23,619 Bitmain S19J Pro mining rigs that are currently active at Helios as collateral.

Argo Blockchain Sells Helios Mining Facility

With rising energy expenses and declining Bitcoin prices, Argo Blockchain’s stock price has fallen over 90% over the course of the year.

The company started selling off its Bitcoin holdings in June with the intention of addressing its financial difficulties and using the proceeds to pay for ongoing running costs. Argo had planned to raise $27 million this year, but that plan collapsed in October.

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The company asked the NASDAQ stock market to halt trade in its shares and unsecured notes until Wednesday on Tuesday. According to the firm’s announcement from today, it will use the cash received from the sale of its Texas facility, along with some of the funds borrowed under the asset-backed loan, to pay off its existing debts, prepayment interest, and other costs totaling about $84 million (£70 million) and $1 million (£1 million), which are owed to NYDIG and North Mill Commercial Finance, respectively. Argo claims that the company will now try to concentrate on expanding and improving operations at its two data centers in Quebec, which are entirely powered by inexpensive hydroelectricity.

The business said that with 15 MW and 5 MW of power capacity, respectively, its facilities in Baie-Comeau and Mirabel currently have a hash rate capacity of about 140 PH/s.

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