Argo Blockchain sells Texas mine to Galaxy Digital to avoid bankruptcy
Argo Blockchain, a top-tier cryptocurrency mining company, recently declared that it had reached an agreement with Galaxy Digital Holdings on a legally binding agreement that will benefit both parties. Argo Blockchain is prepared to sell Galaxy Digital Holdings’ Helios facility in Dickens County, Texas, as explicitly stated in the official press release.
It wasn’t until November 2022 that the Argo blockchain appeared to determine whether Chapter 11 bankruptcy protection applications were possible. To put it simply, the crypto mining company was short of cash and was debating whether declaring bankruptcy would help them stay on their toes at the same time. Fortunately, Galaxy Digital Holdings stepped in as a Good Samaritan to ease Argo Blockchain’s worries, saving them from having to take the decisive step.
As reported in the official press release, Galaxy will take control of Argos Helios mining equipment, which is worth $65 million. In addition, Galaxy is providing an unprecedented asset-backed loan (valued at $35 million) to Argo. The loan must be repaid within 36 months. In return, Argo will put 23,619 Bitmain S19J Pro mining equipment into use as collateral.
This mutual agreement seems to have helped Argo a lot by cutting the entire financial obligation by $41 million. As reported by Argo, the MOU will benefit it by strengthening its financial situation and maintaining its debt servicing capacity. In this way, the firm can look forward to continuing its operations efficiently.
Argo Blockchain’s share rate skyrockets
Just a day before the deal went through, Argo called to stop trading its shares and unblocked certificates on the NASDAQ stock market until almost the end of the year 2022. They also declared that they will announce it officially before listing on the stock market.
Following the official announcement, Argos’ share price on the London Stock Exchange skyrocketed by over 120%. In the course of this year alone, the company’s share price on the LSE plummeted by 93% as the crypto market maintained a steady downtrend. Just the day before the official announcement, Argo was effectively trading at a low of £3.6 per unit. However, the announcement apparently triggered the price towards £8.4 before finally stabilizing
Finally
As far back as June 2022, Argo sold its vast Bitcoin reserves to maintain its ability to pay debts. The firm also showed off a $27 million fundraising effort that unfortunately fell flat in October. Fortunately, a Christmas event occurred at the eleventh hour to prevent another imminent bankruptcy. Now that 2023 is around the corner, only time will tell how promising this new year will be for Argo Blockchain as well as the crypto industry.
