After a financial deal with Galaxy Digital, mining giant Argo Blockchain narrowly avoids bankruptcy. According to data provided by the company, the latter accounts for more than 1% of the computing power used on the Bitcoin (BTC) network.
Argo Blockchain avoids bankruptcy through an agreement with Galaxy Digital
While Argo Blockchain considered itself close to bankruptcy just two weeks ago, the mining giant has found a solution with investment firm specializing in the cryptocurrency ecosystem Galaxy Digital. For this, the company sells part of its mining facilities to its partner, namely those that respond to the name of Helios, located in Dickens County, Texas.
The deal brings on a transaction valued at $65 millionwhich will allow Argo Blockchain to take out a loan from Galaxy Digital of up to $35 million, for an initial term of 36 months.
Said loan will be supported by 23,619 Bitmain S19J Pro mining machineslocated on the Helios website, which remain in the possession of Argo Blockchain, as well as “some machinery» located on a site in Canada. The funds raised by the operation will pay off more than $84 millionwhich had been borrowed from NYDIG ABL and North Mill Commercial Finance.
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An activity that continues despite everything
For machines located on the site acquired by Galaxy Digital, these will continue to operate, thanks to a lease agreement agreed between Argo Blockchain and the new premises owners. In addition, Argo Blockchain will benefit from the electricity rates that Galaxy Digital will have negotiated alongside it with a supplier.
This installation is significant in that it would deploy a computing power of 2.36 exahashes per second, which roughly represents 1% of the total hashrate protecting the Bitcoin blockchain (BTC) to date, according to data from the CoinWars website. In total, Argo Blockchain would be able to deliver 2.5 flashes per second over the network thanks to all its facilities.
In view of this transaction, Argo Blockchain also requested the suspension of the listing of its stock on the Nasdaq. This should resume today thanks to the conclusion of this agreement. As I write these lines, ARBK shares trade at $0.54 per unit around.
👉 Also in the news: the price of Bitcoin (BTC) mining machines has dropped by 80%
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Source: Argo Blockchain
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