After Argo Blockchain’s Nasdaq and London Stock Exchange listing was suspended, the company responded that it would follow-up the next day with an official announcement. On Wednesday, December 28, 2022, Argo announced it would sell its Helios Facility to Galaxy Digital for $65 million.
Galaxy Digital Secures Argo Blockchain’s Texas Data Center with $35M Loan, Company Hopes Transaction Will Allow Operations to Continue
Galaxy Digital has agreed to refinance Argo Blockchain’s (Nasdaq: ARBK) asset-backed loans for $65 million with a new $35 Million loan. On Wednesday, December 28, 2022, Argo announced it had sold its Helios Facility to Galaxy for $65 million.
Galaxy also agreed to house Argo’s fleet of Bitmain-made S19J Pro Bitcoin miners at the Helios facility, which is located in Dickens County, Texas. The transaction between Argo and Galaxy is expected to close on December 28.
In addition, Argo has received a loan of $35 million with a 36 month term. The warranty package that comes with the financing will cover any damage or defects found at the Helios facility in Texas, as well as certain mining machines and other assets located in Quebec.
It was revealed that the equivalent to 23,619 Bitmain S19J Pro Bitcoin mining machines were linked to NYDIG firm. Argo insisted that the transaction with Galaxy “will strengthen Argo’s balance sheet, improve Argo’s liquidity position and allow the company to continue its operations.” Argo shares rose 13.55% to $0.59 from the $0.59 price point, and now stand at $0.67 per share at 11:30 ET, December 28.
The publicly traded bitcoin miner also confirmed the suspension of ARBK shares trading on December 27, outlining that ARBK’s trades on Nasdaq and the London Stock Exchange were open. The company stated that their Canadian Assets, except for “certain mining machines and other assets located in Quebec” will be repaid with the loan.
In addition, Argo also announced that third-quarter earnings results would not be reported “in light of the transaction with Galaxy,” as the bitcoin mining operation was completed. Argo Blockchain is one of the few bitcoin mining companies that is publicly traded and has dealt with financial difficulties during the crypto winter 2022.
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