Argo Blockchain Avoids Bankruptcy with $65M Deal with Galaxy Digital

• Argo Blockchain (ARBK) has avoided bankruptcy after entering into a deal with Galaxy Digital for the sale of its Helios mining facility in Dickens Country, Texas for $65 million.
• The deal also includes a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment.
• Argo will also enter into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility.

Argo Blockchain, a crypto miner, had to look for ways to stay afloat during the bear market and reduce its debt load. After a deal for $27 million in funding fell through in October, the company was on the brink of bankruptcy. However, they managed to avoid this fate by entering into a deal with Galaxy Digital for the sale of its Helios mining facility in Dickens Country, Texas for $65 million.

The deal also includes a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment. This transaction will help Argo bolster its balance sheet and avoid bankruptcy. Additionally, Argo will enter into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility.

The CEO of Argo Blockchain, Peter Wall, stated that this deal with Galaxy achieved all of their goals and let them “live to fight another day”. Chris Ferraro, the president and chief investment officer at Galaxy, mentioned that the deal was structured to boost Argo’s balance sheet and capital structure.

When the news of the deal broke out, Argo’s shares more than doubled in early London Stock Exchange trading. On Tuesday, the company requested a 24-hour suspension of trading in its Nasdaq-listed shares.

Overall, the deal between Argo Blockchain and Galaxy Digital was something that was beneficial to both parties. Argo managed to avoid bankruptcy and Galaxy was able to acquire a mining facility that will help with their own mining capabilities.