Argo Blockchain, a Bitcoin mining company, has announced that it will not have to file for bankruptcy protection thanks to a deal with Galaxy Digital. The London-based firm has agreed to purchase Argo’s Helios mining facility in Dickens County, Texas, for $65 million. In addition to the sale, Argo will receive a $35 million loan from Galaxy Digital, which will be secured by the company’s mining equipment.
The news is a relief for Argo, which has been struggling financially in recent months. The company had previously warned investors that it was at risk of bankruptcy if it could not secure additional funding. However, with the sale of the Helios facility and the new loan from Galaxy Digital, Argo will be able to pay off its debts and continue operating.
Argo will be able to strengthen its balance sheet and avoid bankruptcy thanks to this deal. The company’s financial situation became precarious after an agreement to raise $27 million fell through in October. Argo responded this month by announcing that it was in advanced talks to sell some of its assets and complete an equipment financing transaction in order to avoid Chapter 11 bankruptcy.
Galaxy Digital, founded by renowned investor Mike Novogratz, is a financial services firm focused on cryptocurrency. The company has a reputation for making smart crypto investments, so acquiring the Helios facility makes sense.
The deal is a win-win for both Argo and Galaxy Digital. Argo will be able to pay off its debts and continue operations, while Galaxy Digital will gain a valuable new asset in the form of the Helios facility. It remains to be seen how the acquisition will impact Galaxy Digital’s bottom line, but the company’s track record suggests it will be a successful move.
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