Cryptocurrency mining agency Argo Blockchain has taken a tough choice to promote its flagship mining facility Helios as a way to survive the continuing bear market.
Argo Blockchain CEO Peter Wall formally announced on Dec. 28 a cope with Mike Novogratz’s crypto funding agency Galaxy Digital to promote Helios facility for $65 million. Argo has already been cashing its mined Bitcoin (BTC) to scale 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 scale 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 intention to scale back Argo’s complete debt by $41 million, 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” via the bear market, amid stress from excessive power prices coupled with the low Bitcoin value.
The CEO additionally emphasised that regardless of Argo promoting Helios, the agency has not bought 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 working their mining machines at Helios. He acknowledged:
“Staying at Helios will even enable us to proceed to entry energy via the Texas grid and take part within the ancillary companies, 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 biggest Argo’s mining facility, supporting 200 megawatts (MW) of electrical energy. Compared, one other Argo’s facility, Baie Comeau, operates round 15 MW.
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The information comes amid Argo struggling to safe financing after failing to lift $27 million through subscription for strange shares. In October, Argo stated that it was susceptible to closing attributable to failing to lift new financing. In mid-December, Argo introduced that it was negotiating to promote its property and attempting to “have interaction in an tools financing transaction” as a way to keep away from submitting for chapter.
Argo didn’t instantly reply to Cointelegraph’s request for remark.