The company will also receive another property-backed loan, which will use its mining machinery as collateral.
One of the many struggling crypto mining companies – Argo Blockchain – will try to avoid bankruptcy by selling its company Helius to Mike Novogratz’s Galaxy Digital. The deal will be worth $65 million with the goal of reducing the company’s overall debt.
The Agreement
Argo made the announcement earlier on Dec. 28, noting that he will refinance the property loan and the new one from Galaxy Digital worth $35 million at the beginning of 36 months. In addition to the sale of Helius for $ 65 million, the mining company said it will reduce its total debt by $ 41 million.
These transactions are expected to close at the end of the day. Galaxy has also agreed to host a fleet of Bitmain S19J Pros and Helius, while Argo will retain all the bikes. They will be collateral for the new loan. “Argo will retain the capacity of the Bitcoin mining machine fleet, which represents approximately 2.5 PE/s of total hashrate capacity.
Our employees currently working on Helios will continue is hosted by Galaxy, which is the leading company operator in the Bitcoin space. – said the company’s managing director, Peter Wall. Argo blockchain said that the proceeds from the agreement will allow it to repay all existing debts, prepayment interest and other debts of about $ 84 million and $ 1 million, owed to NYDIG ABL, respectively. LLC and North Mill Commercial Finance, LLC.
The mining company added that only parts of its Canadian-based operations will be affected by the deal, including “mining machines and other assets in Quebec” that will be used as contracts. for asset backed loans.
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The Argo Blockchain Problem
With the start of the bitcoin bear market earlier this year, many miners began to feel the pain immediately, selling more BTC than they mined to compensate for the rising costs. The rapid increase in hash rate and difficulty also helped.
Argo was among the hardest hit, with its share price falling more than 50% after reporting poor earnings for the next few quarters. The company did not report its quarterly results in a statement today because the UK FCA “requires half-yearly reporting of financial results” and Argo is “designated by the SEC as a foreign independent issuer and is required to comply with regulations legal filings in it. real estate market”.
However, Argo said its shares are expected to open for trading on the Nasdaq today after yesterday’s stay request.
