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Mining company Argo Blockchain has announced strategic deals with Galaxy Digital. As a result, the firm will sell its flagship data center in Texas for $65 million and refinance loans.
New RNS: Argo announces a transformational series of agreements with @galaxydigital
— Sale of Helios for $65 million
— Refi of asset-backed loans
— Hosting agreement to keep Argo machines at Helios
Full RNS: https://t.co/gPntaYpBdu#ARB $ARBK #BTC
— Argo (@ArgoBlockchain) December 28, 2022
The company's managing subsidiary Argo will sell Galaxy the Helios facility in Dickens County with all related real estate. The equipment fleet of 23,619 Antminer S19J Pro miners will continue to operate on hosting terms.
These installations with a total hashrate of about 2.36 EH/s will act as collateral for a loan of $35 million from Galaxy for a period of 36 months.
Argo will use the funds received for early repayment of debts to NYDIG (~$84 million) and North Mill Commercial Finance (~$1 million).
"The Galaxy deal is transformational for Argo and benefits in several ways. It reduces our debt by $41 million, provides a stronger balance sheet and increased liquidity to continue operating in a bear market," said CEO Peter Wall.
The agreements with Galaxy do not affect two Argo mining data centers located in the towns of Baie-Comeau and Mirabelle in the Canadian province of Quebec. In total, enterprises with a capacity of 15 MW and 5 MW, respectively, generate a hashrate of about 0.14 EH/s.
In October, Argo reported that it was unable to raise £24 million to replenish working capital. At the same time, the firm sold 3,843 new ASIC miners for about £4.8 million to obtain liquidity.
Against the background of the announcement of agreements with Galaxy, the company's shares on the London Stock Exchange (LSE) rose 106% from the opening price of £3.66. At the time of writing, the securities are trading at the level of £7.75.
dаta: LSE.
On December 27, the firm asked Nasdaq to suspend trading in the shares until the release of a statement on Wednesday. Argo expects that today's session on the platform will open for her as usual.
Recall that on December 12, the exchanges suspended trading in Argo shares amid the expectation of a bankruptcy application. The company denied such plans.
