Cryptocurrency mining agency Argo Blockchain has taken a tough choice to promote its flagship mining facility Helios in an effort to survive the continuing bear market.
Argo Blockchain CEO Peter Wall formally introduced on Dec. 28 a cope with Mike Novogratz’s crypto funding agency Galaxy Digital to promote Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to scale back the mortgage to Galaxy.
Moreover, Galaxy may also present Argo with a brand new $35 million gear finance mortgage to assist the troubled miner cut back its debt. “We’ve used the proceeds of that sale in a brand new Galaxy mortgage to repay the debt that we owed to NYDIG and a tiny bit to a different secured lender,” Wall famous.
The brand new transactions intention to scale back Argo’s whole debt by $41 million, enhance liquidity and working construction, permitting the agency to proceed its mining operations, the CEO stated.
Wall famous that the deal was the “solely viable path ahead” by means of the bear market, amid stress from excessive power prices coupled with the low Bitcoin worth.
The CEO additionally emphasised that regardless of Argo promoting Helios, the agency has not offered any of its mining machines. “These are going to proceed to mine at Helios facility,” Wall stated, including that Argo has additionally signed an settlement to maintain operating their mining machines at Helios. He acknowledged:
“Staying at Helios may also enable us to proceed to entry energy by means of the Texas grid and take part within the ancillary providers, that are offered by Ercot.”
The deal comes simply six months after Argo formally launched Helios in Might 2022. Positioned in Dickens County, Helios facility is the most important Argo’s mining facility, supporting 200 megawatts (MW) of electrical energy. As compared, one other Argo’s facility, Baie Comeau, operates round 15 MW.
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The information comes amid Argo struggling to safe financing after failing to boost $27 million through subscription for abnormal shares. In October, Argo stated that it was vulnerable to closing on account of failing to boost new financing. In mid-December, Argo introduced that it was negotiating to promote its property and making an attempt to “have interaction in an gear financing transaction” in an effort to keep away from submitting for chapter.
Argo didn’t instantly reply to Cointelegraph’s request for remark.
