The shares of the crypto-mining company Argo Blockchain (ARB.UK) are up almost 140% today thanks to new operations that reduce the risk of bankruptcy for the company:
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The company announced it would sell 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 overall debt by $41 million. The company’s largest “cryptocurrency mine” and one of the largest in the United States is being acquired by investment firm Galaxy Digital owned by Mike Novogratz. Argo Blockchain also announced a $35 million loan from Galaxy and the sale of all mined BTC.
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The sale agreement comes just six months after Argo started the “mine” in May 2022. The plant supports 200 megawatts (MW) of electricity. The Corporation’s other facility, Baie Comeau, will supply approximately 15 MW. Despite the sale of the Helios facility, Argo Blockchain has not sold any of its mining machines, which continue to operate in the Helios facility. Company CEO Peter Wall reports:
“Continued Helios operations will allow us to continue to source electricity from the Texas grid and participate in ancillary services provided by Ercot.”
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Wall, CEO of Argo Blockchain, believes the deal will allow the company to weather the “cryptocurrency winter”, improving liquidity and continuing cryptocurrency mining. According to the CEO, the deal with Galaxy Digital was a necessary step in the bull market. The mining industry is still grappling with the pressure of high energy costs and the falling price of bitcoin, which is still below the cost of mining.
Argo Blockchain Shares (ARB.UK) in table M15. Source: xStation5 by XTB
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