Argo shares soar following $65M sale of mining facility to Galaxy digital

Struggling Bitcoin (BTC) miner Argo Blockchain bought its Helios mining facility in Texas to Galaxy Digital for $65 million and likewise acquired a $35 million mortgage from the corporate as a part of the deal, in response to a Dec. 28 assertion.

Following the information, Google Finance knowledge exhibits that its London shares have been up by over 100% to £7.22 as of press time.

Argo repays previous loans utilizing new financing

In line with the press assertion, Argo used the proceeds from the Helios facility gross sales and a part of the mortgage to repay its debt, which incorporates the cash it owes crypto lender NYDIG.

In a separate video, CEO Peter Wall confirmed that the agency had repaid its NYDIG debt and one other secured lender utilizing the proceeds of its new deal. Wall stated:

“This transaction with Galaxy is a transformational one for Argo and advantages the Firm in a number of methods. It reduces our debt by $41 million and offers us with a stronger steadiness sheet and enhanced liquidity to assist guarantee continued operations by way of the continuing bear market.”

In line with Wall, the brand new deal was the one “solely viable path ahead” for the corporate contemplating Bitcoin’s declining worth and the rising vitality price.

Argo maintains gear possession

Argo’s mining gear within the Helios facility would stay operational. The agency stated it maintains possession of all of the mining machines in that facility, including that it has entered right into a two-year internet hosting settlement with Galaxy. Argo can pay Galaxy an undisclosed internet hosting payment.

In the meantime, Argo secured its Galaxy mortgage through the use of its 23,619 Bitmain S19J Professional mining machines presently working at Helios and a few of its machines situated in knowledge facilities in Canada as collateral.

The agency added that its focus is rising and optimizing the operations at its two knowledge facilities in Quebec, Canada, totally powered by low-cost hydroelectricity.

Argo disclosed that it’s going to not but report its earnings for the third quarter of 2022. The agency additionally added that its inventory buying and selling would resume on Dec. 28 when each the London Inventory Alternate and the Nasdaq are open for buying and selling.