Argo Blockchain to sell Galaxy Digital Texas mining centre for $65 million

The mining company Argo Blockchain has announced a strategic series of agreements with Galaxy Digital. As a result, the firm will sell its flagship data centre in Texas for $65 million and refinance its loans.

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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

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The operating subsidiary of the company will sell the Helios facility in Dickens County, along with all associated real estate. The equipment fleet of 23,619 Antminer S19J Pro miners will continue to operate under hosting terms.

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With a combined hashrate of about 2.36 EH/s, these installations will secure a $35 million Galaxy loan for 36 months.

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The proceeds will be used to repay debts to NYDIG (about $84 million) and North Mill Commercial Finance (about $1 million).

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“The Galaxy deal is transformational for Argo and brings benefits in several ways. It reduces our debt by $41 million, strengthens the balance sheet and provides increased liquidity to continue operating in a bear market,” said the company’s CEO Peter Wall.

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The Galaxy agreements do not affect Argo’s two mining data centres located in Be-Como and Mirabel in the Canadian province of Quebec. Collectively, the facilities with capacities of 15 MW and 5 MW respectively generate a hashrate of around 0.14 EH/s.

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In October, Argo said that could not raise £24 million to bolster working capital. In the same period, the firm, to raise liquidity, sold 3,843 new ASIC miners for about £4.8 million.

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Against the backdrop of the Galaxy agreements announcement, Argo’s shares on the London Stock Exchange (LSE) rose 106% from the opening price of £3.66. At the time of writing, they traded at £7.75.

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On 27 December the firm asked Nasdaq to halt trading of its shares until the publication of a statement on Wednesday. Argo expects that today’s session on the Nasdaq platform will open as normal.

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As reported on 12 December, exchanges suspended trading in Argo shares amid expectations of a bankruptcy filing. The company denied such plans.

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