Argo Blockchain sells Texas mine to Galaxy Digital to avoid bankruptcy

Argo Blockchain, a top-tier mining company for cryptocurrencies, recently declared that it had reached an agreement with Galaxy Digital Holdings on a legally binding agreement that would benefit both parties. Argo Blockchain is prepared to sell Galaxy Digital Holdings its Helios facility in Dickens County, Texas, as stated explicitly in its official news release.

Only in November 2022 did the Argo blockchain appear to determine if Chapter 11 bankruptcy security applications were possible. To put it simply, the crypto mining company was short on cash and was debating whether declaring bankruptcy would help them stay on their toes simultaneously. Fortunately, Galaxy Digital Holdings stepped in as a Good Samaritan to ease Argo Blockchain’s concerns, saving them from having to take the crucial step.

As reported by its official news release, Galaxy will assume control over Argo’s Helios mining equipment, which is worth $65 million. Moreover, Galaxy is providing an unprecedented asset-backed loan (with a value of $35 million) to Argo. The loan needs to be repaid within 36 months. Reciprocally, Argo will put 23,619 Bitmain S19J Pro mining equipment into service as security.

This mutual deal seems to have helped a lot for Argo by cutting down its entire financial obligation by $41 million. As reported by Argo, the deal agreement will come in handy for it by reinforcing its financial situation and keeping up its debt-paying ability. In this way, the firm can look forward to continuing its operations effectively.

Argo Blockchain’s Share Rate Shoots up Abruptly 

Only a day before the deal came through, Argo urged to cease trading its shares and unbarred notes on the NASDAQ stock market until almost the end of the year 2022. They also declared that they will announce it officially before taking up stock market trading.

Following the official declaration, Argo’s stock price on the London Stock Exchange shot up abruptly by over 120%. During this year only, the firm’s rates on the LSE dropped sharply by 93% as the crypto market upheld a firm downtrend. Only the day prior to making the official announcement, Argo was effectively trading at a low of £3.6 per unit. However, the announcement seemingly triggered their price towards £8.4 before becoming conclusively stable

On a Final Note

Dating back to June 2022, Argo was selling its enormous Bitcoin reserves to maintain its debt-paying ability. The firm also made a showing for a $27 million fundraising effort that unfortunately fell flat in October. Luckily, a Christmas occurrence came about at the eleventh hour to forestall yet 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.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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