Home
News
- Argo Blockchain sells Helios to Galaxy for $65 Million (£54 Million).
- Argo maintains ownership of all mining machines and will host machines at Helios.
- Reduces debt by $41 Million (£34 Million) and improves liquidity position.
Followed by an equity purchase agreement, an Argo subsidiary will sell its Helios facility and real property in Dickens County, Texas and related assets to Galaxy for $65 million (£54 million), subject to customary post-closing adjustments. In addition, Galaxy will provide Argo with a new asset-backed loan in an aggregate principal amount of $35 million (£29 million) with an initial term of 36 months.
It must be noted that this financing will be secured by a collateral package that includes 23,619 Bitmain S19J Pro mining machines currently operating at Helios and certain machines located at Argo’s Canadian data centers. Argo has also committed to working with Galaxy to ensure a smooth transition at Helios and minimize any disruption to operations.
The Official Announcement of Argo Blockchain
According to its Press Release, Argo Blockchain plc (LSE: ARB; NASDAQ: ARBK), a global leader in cryptocurrency mining, announced that “it has closed the previously announced transactions with Galaxy Digital Holdings, Ltd. (TSX: GLXY) (“Galaxy”). The Company has sold its Helios facility in Dickens County, Texas for $65 Million (£54 Million), refinanced its asset-backed loans, and entered into a hosting agreement with Galaxy to maintain Argo’s mining machine at the Helios facility.”
Argo Blockchain also noted that full details of the transactions were disclosed in an announcement on 28 December 2022.
Management Commentary
The CEO of Argo Blockchain, Peter Wall, details the rationale for the sale of the Helios facility and discusses the new strategic direction for the company. “This transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market,” he said.
Mr. Wall continued, “Argo will maintain ownership of its fleet of Bitcoin mining machines, which represents approximately 2.5 EH/s of total hashrate capacity. Our miners currently operating at Helios will continue to be hosted there by Galaxy, which is a high quality, institutional participant in the Bitcoin mining space.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
