Cryptocurrency mining agency Argo Blockchain has taken a troublesome resolution to promote its flagship mining facility Helios with the intention to survive the continued bear market.
Argo Blockchain CEO Peter Wall formally introduced on Dec. 28 a take care of Mike Novogratz’s crypto funding agency Galaxy Digital to promote the Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to cut back the mortgage to Galaxy.
Moreover, Galaxy will even present Argo with a brand new $35 million tools 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 purpose to cut back Argo’s complete debt by $41 million and 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 the bear market amid strain from excessive power prices coupled with the low Bitcoin value.
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 said:
“Staying at Helios will even enable us to proceed to entry energy by 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 Could 2022. Situated in Dickens County, Helios facility is the most important Argo mining facility, supporting 200 megawatts (MW) of electrical energy. Compared, one other Argo facility, Baie Comeau, operates round 15 MW.
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The information comes amid Argo’s battle to safe financing after failing to lift $27 million by way of subscription for strange shares. In October, Argo stated that it was susceptible to closing on account of failing to lift new financing. In mid-December, Argo introduced that it was negotiating to promote its belongings and making an attempt to “interact in an tools financing transaction” with the intention to keep away from submitting for chapter.
Argo didn’t instantly reply to Cointelegraph’s request for remark.
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