Argos Blockchain will sell its Helios facility for $65 million and receive an additional $35 million loan from Galaxy Digital.
Argo Blockchain, a publicly-traded blockchain technology firm focused on large-scale cryptocurrency mining, has decided to sell its Texas mining facility dubbed Helios.
According to the video message shared by Argo Blockchain CEO Peter Wall on December 28th, the deal allows the company to maintain its operations and “reduce <its> debt load.”
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When talking about the current situation in the crypto industry and the troubles Argo is facing, the company’s CEO Peter Wall noted:
Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load, and maintain access to the unique power grid in Texas. This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.
Argo Blockchain is set to sell its Helios facility to crypto investment firm Galaxy Digital for $65 million.
Nevertheless, Galaxy Digital is set to provide Argo with an additional $35 million equipment finance loan. Wall claimed that the funds will be used to reduce Argo’s debt, paying off its loan to an investment management firm New York Digital Investment Group (NYDG).
It is worth noting that, in August, the news broke that Argo is cashing its mined Bitcoin (BTC) to pay off its debts to Galaxy Digital.
On top of that, in the video, Wall stated that selling the Helios facility is the “only viable path forward,” as the increasing electricity costs and low Bitcoin prices are putting pressure on crypto miners.
Despite selling Helios to Galaxy Digital, Wall stated that the company hasn’t sold any of its machines and will “continue to mine at Helios facility.” Argo Blockchain CEO added:
Staying at Helios will also allow us to continue to access power through the Texas grid and participate in the ancillary services, which are provided by Ercot.
Argos Blockchain Texas-based facility started operating in May 2022. Before selling, the Helios facility was the largest Argos mining location, with a support capacity of 200 megawatts (MW) of electricity.