Bitcoin (BTC) miner Argo Blockchain has sold its Helios mining facility in Texas for $65 million to Galaxy Digital and received a $35 million loan from the company, according to information on December 28. statement.
In response to the news, Google Finance data shows that London shares are up more than 100% to £7.22 at the time of writing.
Algo uses new funding to repay old loans
According to a press release, Argo used the proceeds from the sale of the Helios facility and a portion of the loan to pay off debt, including money owed to crypto lender NYDIG.
separately videoCEO Peter Wall confirmed that the company has used the proceeds from the new deal to repay NYDIG debt and another secured lender.
“This transaction with Galaxy is transformative for Argo and will benefit the company in several ways. It will reduce debt by $41 million, strengthen our balance sheet and improve liquidity. This will allow us to continue operating in an ongoing bear market.”
According to Wall, the new deal was “the only viable avenue” for the company given Bitcoin’s declining value and rising energy costs.
Argo retains ownership of equipment
Argo’s mining equipment at the Helios facility will continue to operate. The company said it maintains ownership of all mining machines in its facility, adding that he signed a two-year hosting deal with Galaxy. Argo will pay undisclosed hosting fees to Galaxy.
Meanwhile, Argo secured the Galaxy loan using 23,619 Bitmain S19J Pro mining machines currently running in Helios, along with some of those machines in its Canadian data center, as collateral.
The company is focused on expanding and optimizing its operations at its two data centers in Quebec, Canada, which are fully powered by low-cost hydroelectric power, he added.
Argo has revealed that it has yet to report its third quarter 2022 earnings. The company also added that he will resume trading on December 28, when both the London Stock Exchange and his Nasdaq will begin trading.