Argo, a Bitcoin miner, avoids bankruptcy with a $100M deal from Galaxy Digital TechCrunch

Galaxy Digital and Argo Blockchain Helios have agreed to purchase the bitcoin mining facility for $65million, the companies announced Wednesday.

Galaxy will also acquire “related operations” from Argo Blockchain. Galaxy will also provide Argo a $35 million loan to help with its restructuring. This loan is secured by a collateral package that includes Argo’s mining equipment. Argo will continue to own its Dickens County facility in Texas and will enter into a two year hosting agreement with Galaxy to provide space at the facility for its mining equipment.

This deal will not only allow Galaxy to expand its mining operations, but it will also prevent Argo from going bankrupt. Argo stated that the transaction will “strengthen Argo’s financial position” and improve its liquidity so that the company can “continue operating.” He saidThe current situation.

Peter Wall, Argo CEO, stated in a statement that the financing will reduce Argo’s debt to $41 million and increase liquidity “to ensure continued operations during the ongoing downmarket.”

The market has been facing bankruptcy in the bitcoin mining sector for the past few months. Great recessionsThis has resulted in shrinking margins, and increased profit losses due to higher energy prices.

Core Scientific, the largest publicly traded cryptocurrency mining company in the US filed for Chapter 11 bankruptcy last week. Compute North, a bitcoin mining company that provides data on the subject, filed for Chapter 11 bankruptcy protection. Raised $385 millionIn strategic finance seven years ago

“The transaction will accelerate the expansion of Galaxy’s bitcoin mining operations and services, provide access to tax-efficient mining infrastructure and reduce reliance on third-party hosting providers,” Galaxy said in a statement. statment.

Even though some miners are struggling, the Helios purchase signals Galaxy’s intent to expand its mining operations. Helios, which will be Galaxy’s second owned and managed facility, will be in addition to its first mine site. announceThis year, earlier.

Chris Ferraro, President and Chief Investment Officer of Galaxy, said in a statement that this acquisition is a “new phase” for Galaxy’s two-year bitcoin mining journey, as it increases its scope and breadth of solutions.

argo InvolvedIt rose to $6.39 on London Stock Exchange, a gain of 77.43%. Bitcoin has been trading in the meantime priceIt is down slightly on the day, at $16,750 in that same time frame.

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