Galaxy Digital has agreed to acquire Argo Blockchain’s bitcoin mining facility Helios for $65 million, the two firms announced Wednesday.
The deal also includes Galaxy acquiring “related operations” from Argo Blockchain. Galaxy will also provide Argo with a $35 million loan as the company restructures, secured by a collateral package with Argo mining equipment. Argo will keep ownership of its machines at the Dickens County, Texas, facility and will enter a two-year hosting agreement with Galaxy to provide a place for its mining machines at the facility.
The financing will help to reduce Argo’s debt by $41 million and enhance its liquidity “to help ensure continued operations through the ongoing bear market,” Argo’s CEO Peter Wall said in a statement.
This acquisition is a “new stage” for Galaxy’s two-year bitcoin mining journey as it increases its operating scale and breadth of solutions, Chris Ferraro, president and chief investment officer at Galaxy, said in a release.
Bitcoin miner Argo to avoid bankruptcy with $100M deal from Galaxy Digital by Jacquelyn Melinek originally published on TechCrunch