Argo Blockchain Avoids Bankruptcy With $100 Million Agreement With Galaxy Digital
Key Points:
- For about $65 million, Galaxy Digital and Argo Blockchain have reached an agreement to buy the Helios Bitcoin mining facility and its associated business operations.
- The deal will make it easier for Galaxy to expand its bitcoin mining operations and services, give it access to infrastructure that is tax-efficient, and lessen its reliance on outside hosting companies.
- Galaxy plans to keep the full operations staff at Helios and use it as its primary proprietary mining plant. Additionally, Galaxy will start providing Helios with hosting services for outside bitcoin miners, opening up a new source of income for the company.
Bitcoin miner Argo Blockchain decided to sell its Helios mining operation in Dickens County, Texas, to Galaxy Digital for $65 million, preventing it from seeking bankruptcy protection.
Argo Blockchain found itself difficult when a plan for $27 million in the capital fell through in October. The acquisition will help Argo strengthen its balance sheet and prevent bankruptcy. The miner announced earlier this month that it was in advanced talks to sell some of its assets and complete an equipment finance deal to avoid declaring Chapter 11 bankruptcy.
In connection with this transaction, Galaxy Digital has also agreed to grant Argo Blockchain a new $35 million senior secured loan, which will be backed by a collection of collateral that includes mining equipment owned by Argo. Additionally, Argo and Galaxy Digital will sign a two-year hosting agreement, guaranteeing Argo’s mining equipment a spot at the Helios facility.
In addition, Argo Blockchain will sign a two-year hosting deal with Galaxy Digital, guaranteeing a location for Argo’s computers to continue mining at the Helios facility.
The agreement will lessen Galaxy’s reliance on outside hosting companies, speed up the expansion of its Bitcoin mining activities and services, and give it access to infrastructure that is tax-efficient.
In Dickens County, Texas, a significant Bitcoin mining operation called Helios can use immersion cooling to operate up to 180 megawatts (MW) of mining power. Helios is anticipated to give Galaxy up to 800 MW of capacity upon receiving necessary permissions, enabling the business to expand its own hosted Bitcoin mining infrastructure beyond its initial objectives.
Chris Ferraro, President and Chief Investment Officer at Galaxy, said:
“The acquisition of Helios represents a new stage over our two-year journey in Bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital asset network and shareholders alike.”
Galaxy Digital plans to keep the full operations staff at Helios and use it as its primary proprietary mining plant. Additionally, Galaxy will start providing Helios with hosting services for outside Bitcoin miners, opening up a new source of income for the company.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
Author
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Argo Blockchain Avoids Bankruptcy With $100 Million Agreement With Galaxy Digital
Key Points:
- For about $65 million, Galaxy Digital and Argo Blockchain have reached an agreement to buy the Helios Bitcoin mining facility and its associated business operations.
- The deal will make it easier for Galaxy to expand its bitcoin mining operations and services, give it access to infrastructure that is tax-efficient, and lessen its reliance on outside hosting companies.
- Galaxy plans to keep the full operations staff at Helios and use it as its primary proprietary mining plant. Additionally, Galaxy will start providing Helios with hosting services for outside bitcoin miners, opening up a new source of income for the company.
Bitcoin miner Argo Blockchain decided to sell its Helios mining operation in Dickens County, Texas, to Galaxy Digital for $65 million, preventing it from seeking bankruptcy protection.
Argo Blockchain found itself difficult when a plan for $27 million in the capital fell through in October. The acquisition will help Argo strengthen its balance sheet and prevent bankruptcy. The miner announced earlier this month that it was in advanced talks to sell some of its assets and complete an equipment finance deal to avoid declaring Chapter 11 bankruptcy.
In connection with this transaction, Galaxy Digital has also agreed to grant Argo Blockchain a new $35 million senior secured loan, which will be backed by a collection of collateral that includes mining equipment owned by Argo. Additionally, Argo and Galaxy Digital will sign a two-year hosting agreement, guaranteeing Argo’s mining equipment a spot at the Helios facility.
In addition, Argo Blockchain will sign a two-year hosting deal with Galaxy Digital, guaranteeing a location for Argo’s computers to continue mining at the Helios facility.
The agreement will lessen Galaxy’s reliance on outside hosting companies, speed up the expansion of its Bitcoin mining activities and services, and give it access to infrastructure that is tax-efficient.
In Dickens County, Texas, a significant Bitcoin mining operation called Helios can use immersion cooling to operate up to 180 megawatts (MW) of mining power. Helios is anticipated to give Galaxy up to 800 MW of capacity upon receiving necessary permissions, enabling the business to expand its own hosted Bitcoin mining infrastructure beyond its initial objectives.
Chris Ferraro, President and Chief Investment Officer at Galaxy, said:
“The acquisition of Helios represents a new stage over our two-year journey in Bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital asset network and shareholders alike.”
Galaxy Digital plans to keep the full operations staff at Helios and use it as its primary proprietary mining plant. Additionally, Galaxy will start providing Helios with hosting services for outside Bitcoin miners, opening up a new source of income for the company.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
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