Struggling Bitcoin (BTC) miner Argo Blockchain offered its Helios mining facility in Texas to Galaxy Digital for $65 million and in addition obtained a $35 million mortgage from the corporate as a part of the deal, based on a Dec. 28 assertion.
Following the information, Google Finance information exhibits that its London shares had been up by over 100% to £7.22 as of press time.
Argo repays outdated loans utilizing new financing
In accordance with the press assertion, Argo used the proceeds from the Helios facility gross sales and a part of the mortgage to repay its debt, which incorporates the cash it owes crypto lender NYDIG.
In a separate video, CEO Peter Wall confirmed that the agency had repaid its NYDIG debt and one other secured lender utilizing the proceeds of its new deal. Wall mentioned:
“This transaction with Galaxy is a transformational one for Argo and advantages the Firm in a number of methods. It reduces our debt by $41 million and supplies us with a stronger steadiness sheet and enhanced liquidity to assist guarantee continued operations by means of the continued bear market.”
In accordance with Wall, the brand new deal was the one “solely viable path ahead” for the corporate contemplating Bitcoin’s declining worth and the rising power price.
Argo maintains tools possession
Argo’s mining tools within the Helios facility would stay operational. The agency mentioned it maintains possession of all of the mining machines in that facility, including that it has entered right into a two-year internet hosting settlement with Galaxy. Argo pays Galaxy an undisclosed internet hosting price.
In the meantime, Argo secured its Galaxy mortgage through the use of its 23,619 Bitmain S19J Professional mining
machines presently working at Helios and a few of its machines positioned in information facilities in Canada as collateral.
The agency added that its focus is rising and optimizing the operations at its two information facilities in Quebec, Canada, totally powered by low-cost hydroelectricity.
Argo disclosed that it’s going to not but report its earnings for the third quarter of 2022. The agency additionally added that its inventory buying and selling would resume on Dec. 28 when each the London Inventory
Trade and the Nasdaq are open for buying and selling.