Bitcoin Miner Argo Blockchain Will Avoid Bankruptcy With $100M Bailout From Novogratz’s Galaxy Digital
Galaxy will buy Argo's Helios facility for $65 million and provide $35 million loan to help the miner amid restructuring
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Bitcoin miner Argo Blockchain (ARBK) will avoid filing for bankruptcy protection after it agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million.
The miner will also get a new $35 million loan from noted investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo's mining equipment, according to a statement sent to CoinDesk.
"Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique power grid in Texas," Argo CEO Peter Wall told CoinDesk. "This deal with Galaxy achieves all of these goals, and it lets us live to fight another day."
The transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October. Earlier this month, the miner said that it was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy.
Additionally, Argo will enter into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility, according to the statement.
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