Argo Blockchain’s $100 Million Lifeline
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An editor at Coincrop
29 Dec 2022 | 3 min read
n a bid to avoid insolvency, Bitcoin mining company Argo Blockchain has secured an astounding $100 million lifeline from Galaxy Digital, the venture capital firm of billionaire Michael Novogratz.
Galaxy will acquire Argo's Helios facility for the sum of $65 million and offer a loan worth $35 million to support the miner during restructuring.
Argo Blockchain (ARBK) has successfully averted bankruptcy, as the company closed a deal to sell its Helios mining facility in Dickens Country, Texas for a staggering $65 million. Moreover, famed investor Michael Novogratz's crypto-focused financial services firm will be providing Argo with an additional loan of $35 million that will act as security against their bitcoin mining equipment. This agreement holds promise for ARBK and shows potential investors the miner’s commitment towards succeeding in this competitive industry.
By completing this transaction, Argo will be able to maximize the strength of its balance sheet and dodge bankruptcy after a potential deal for $27 million in funding fell apart back in October. Recently, they had announced that discussions were being held on selling assets or obtaining equipment financing with an intention to bypass Chapter 11 bankruptcy proceedings.
To ensure a steady place for its computers to keep mining, Argo will enter into a two-year hosting contract with Galaxy at the Helios facility. This arrangement was announced in an official statement recently released by the company.
JonathanAn editor at Coincrop
Jonathan is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely sailing.
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