Argo Blockchain offers Galaxy Digital its top mining site for $65 million.

In order to weather the current bear market, cryptocurrency mining company Argo Blockchain took the difficult choice to liquidate its flagship mining site Helios.

On December 28, Argo Blockchain CEO Peter Wall actually declared a contract to sell the Helios facility for $65 million to Mike Novogratz's cryptocurrency investment firm Galaxy Digital. Argo already has started selling its Bitcoin generated to cut back on Galaxy's loan.

In order to aid the struggling miner in paying off its debt, Galaxy will also give Argo a fresh $35 million equipment finance loan. “Weve used the proceeds of that sale in a new Galaxy loan to pay off the debt that we owed to NYDIG and a tiny bit to another secured lender,” Argo CEO noted.

The new deals are intended to lower Argo's overall debt by $41 million, readily available, and enhance the business model, all of which will enable the company to maintain its mining activities, according to the CEO.

Wall stated that under stress from high energy expenses combined with the low Bitcoin price, the agreement was the “only conceivable road forward” during the bearish trend.

The company really hasn't sold any of its mining equipment, the CEO noted, albeit Argo selling Helios.

Including that Argo has also agreed to continue operating its mining equipment at Helios. He declared:

“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.”

The agreement was made barely six months after Argo's formal May 2022 launching of Helios. The largest Argo mining operation, the Helios facility, is situated in Dickens County and can produce 200 MW of power. Comparatively, Baie Comeau, another Argo facility, runs at about 15 MW.

The information is released as Argo struggles to find funding after failing to obtain $27 million through the subscription for common shares. Argo warned that it would have to close its doors in October since it has been unable to secure additional funding. Midway through December, Argo disclosed that it was seeking to avoid declaring bankruptcy by haggling over the sale of its assets and “engaging in an equipment financing transaction.”

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