Shares of cryptocurrency mining company Argo Blockchain (ARB.UK) are gaining nearly 140% today, thanks to new deals that reduce the risk of bankruptcy for the company:
- The company announced that it will sell its largest cryptocurrency mine, Helios, to Galaxy Digital for $65 million and is in the process of refinancing a new asset-backed loan. The sale agreement will reduce the company's total debt by $41 million. The company's largest cryptocurrency mine and one of the largest in the US will be acquired by Mike Novogratz's investment firm Galaxy Digital. Argo Blockchain also announced a $35 million loan from Galaxy and the sale of all mined BTC;
- The sale agreement comes just six months after Argo launched the card-saturated 'mine' in May 2022. The facility supports 200 megawatts (MW) of electricity. The company's other facility, Baie Comeau, supports about 15 MW. Despite the sale of the Helios facility, Argo Blockchain has not sold any of its mining machines, which will continue to operate at the Helios facility. The company's CEO, Peter Wall reported:
"Continuing operations at Helios will allow us to continue to access energy through the Texas power grid and participate in the ancillary services that are provided by Ercot."
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Open account Try demo Download mobile app Download mobile app- CEO of Argo Blockchain, Wall believes that the deal will allow the company to survive the 'cryptocurrency winter', improve liquidity and allow it to continue mining cryptocurrencies. According to the CEO, the deal with Galaxy Digital was a necessary step forward in the bull market. The mining industry is still struggling with the pressure of high energy costs and the falling price of Bitcoin, still below the cost of mining.
Shares of Argo blockchain (ARB.UK), M15 interval. Source: xStation5
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