Argo Blockchain To Sell Helios Mining Facility to Galaxy Digital
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Argo Blockchain Sell Helios to Galaxy Digital
On December 28, Argo Blockchain CEO Peter Wall announced an agreement to sell the Helios infrastructure for $65 million to Mike Novogratz's cryptocurrency investment company Galaxy Digital. In order to decrease the debt to Galaxy, Argo has already begun redeeming its mined Bitcoin.
Argo will also receive a new $35 million equipment financing loan from Galaxy to assist in the ailing miner's deficit reduction. According to Wall, they have utilized the profits of that transaction in a new Galaxy loan to eliminate the debt they owed to NYDIG and a small amount to some other secured lender.
The Objective of the Acquisition Deal
The new deals are intended to lower Argo's overall debt by $41 million, increase liquidity, and enhance the operational framework, enabling the company to maintain its mining activities, according to the CEO.
The acquisition, according to Wall, was the only conceivable road ahead during the bearish trend, under pressure from high costs of electricity and the relatively low cost of bitcoin. The company has not sold any of its mining equipment, the CEO noted, despite Argo acquiring Helios. According to Wall, who also stated that Argo inked a contract to keep operating its mining equipment at Helios, they keep mining at the Helios plant.
Maintenance of Texas Network
Peter Wall further stated that remaining at Helios will enable them to maintain the Texas grid to get electricity and use Ercot's additional services.
The agreement is made barely six months after Argo's formal May 2022 introduction of Helios. The largest Argo mining operation, Helios, is situated in Dickens County and can produce 200 MW of power. The operating capacity of Baie Comeau, another Argo operation, is about 15 MW.