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Argo Blockchain to avoid bankruptcy with $100m from Galaxy Digital

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Argo Blockchain to avoid bankruptcy with $100m from Galaxy Digital
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  • Argo Blockchain has negotiated a $100 million deal with Galaxy Digital which will help it avoid bankruptcy.
  • The crypto mining firm’s share price has soared more than 102% following the announcement of the deal.

London-based crypto mining firm Argo Blockchain has turned the tide thanks to its latest deal with Mike Novogratz’s crypto investment firm Galaxy Digital. The troubled crypto miner has negotiated a $100 million bailout that involves asset sales and a credit facility. 

Argo Blockchain will sell Helios for $65 million 

According to an announcement by Argo Blockchain CEO Peter Wall, the firm has finalized “transformational strategic transactions with Galaxy Digital Holdings, Ltd.”

These include the sale of Helios, Argo’s top mining facility based in Texas. Galaxy Digital will acquire Helios for £54 million ($65 million), which will make the subsidiary its flagship mining operation.

Wall has clarified that Argos will maintain ownership of all mining machines and will host machines at Helios following its acquisition. “Staying at Helios will also allow us to continue to access power through the Texas grid and participate in the ancillary services,” he added. 

The deal also includes a $35 million loan to Argo which will refinance its existing asset-backed loans. This deal will reduce Argo Blockchain’s liabilities by $41 million, providing a much-needed boost to its operations.

“Transactions will strengthen Argo’s balance sheet, improve Argo’s liquidity position, and enable the Company to continue operations” the official press release stated. 

New deal will help Argo avoid bankruptcy

This deal will help Argo Blockchain in avoiding a bankruptcy filing, something that was starting to look like a very real possibility given its current liquidity issues.

It was described by the CEO as the “only visible path forward” as the mining firm navigates its way through a ruthless bear market that has left several of its rivals bankrupt in its wake. 

The firm was seeking a capital injection of up to $27 million earlier this year in October. When this plan fell apart, Argo warned that it may become cash flow negative and may be forced to cease its operations. 

The deal with Galaxy Digital has sent Argo Blockchain’s share price soaring. Data from the London Stock Exchange website shows that the stock is currently up more than 102% since its previous market close on 23 December. The firm had requested a 24-hour suspension of U.S. trading ahead of this announcement. 

While the percentage value of Argo’s share price appreciation may seem optimistic, it is important to note that the year-to-date (YTD) returns are currently in the red, -91.8% to be precise. 

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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