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Argo Blockchain Plc, a UK-based cryptocurrency miner, has announced an agreement with Galaxy Digital Holdings to sell its flagship facility to fund operations and avoid bankruptcy.
According to the announcement by the company, an Argo subsidiary will sell its Helios facility located in Dickens County, Texas to Galaxy Digital Holdings. The sale is reportedly worth $65 million.
As part of the deal, which is expected to be completed as early as this week, Argo will secure an additional $35 million loan from Galaxy Digital. The asset-backed loan will be secured using some of Argo’s facilities which include 23,619 Bitmain S19J rigs located at Helios, and other machines located at the crypto miner’s data centers in Canada.
With the funds secured from the sales of the Helios facility and the newly acquired asset-backed loan, Argo will repay its existing debts and other commitments of about $84 million and $1 million owed to NYDIG and North Mill Commercial Finance respectively. After this repayment, the company will receive about $6 million from a collateral account held by NYDIG.
According to Argo’s CEO Peter Wall, the company still maintains ownership of its mining rigs housed in the Helios facility. He added that the deal with Galaxy Digital will reduce its debt obligation by $41 million and provide it with a healthier balance sheet that will ensure its continued operations.
Recall that the Helios facility which sits on 320-acre land and houses over 20,000 Bitmain S19J Pro rigs started operations in May 2022.
Argo Lowers Debt Burden via Bitcoin Sales
So far in 2022, the company has been shedding off its exposure to its BTC-backed loan owed to Galaxy Digital and strengthening its balance sheet through the sales of a portion of its monthly Bitcoin production.
As previously reported by TheCoinRise, the UK-based crypto miner sold 887 BTC at an average price of $22,670 in July to lower obligations to its Bitcoin-backed loan and also fund operations. Prior to its July sales, the miner sold 636 BTC in June at an average of $24,500.
With the bouts of bankruptcy being experienced in the industry at this time, the new arrangement will save Argo Blockchain and its investors/creditors from related strain.
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