Argo Blockchain Avoids Bankruptcy with $100 Million Deal with Galaxy Digital

• Argo Blockchain (ARBK) has avoided filing for bankruptcy protection after agreeing to sell its Helios mining facility in Dickens Country, Texas to Galaxy Digital for $65 million.
• The miner will also get a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment.
• Argo’s shares have more than doubled in early London Stock Exchange trading.

Argo Blockchain (ARBK) has successfully avoided filing for bankruptcy protection after agreeing to sell its Helios mining facility in Dickens Country, Texas to Galaxy Digital for $65 million. The miner will also be receiving a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment. This transaction will help Argo bolster its balance sheet and avoid bankruptcy after a deal for $27 million in funding fell through in October.

The miner had found itself in a precarious situation and was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy. However, with the help of Galaxy Digital, Argo will be able to continue mining through the bear market, reduce its debt load and maintain access to the unique power grid in Texas.

Chris Ferraro, president and chief investment officer at Galaxy, noted that the deal was structured to boost Argo’s balance sheet and capital structure. When the miner kicked off its process, “we were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities,” he added.

Additionally, the two companies have also entered into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility.

The news of the deal was welcomed by the markets as Argo’s shares more than doubled in early London Stock Exchange trading. On Tuesday, the company requested a 24-hour suspension of trading in its Nasdaq-listed stock to discuss further details.

All in all, the deal with Galaxy Digital comes as a much needed lifeline for Argo Blockchain and its shareholders. The miner will now be able to reduce its debt load and continue mining in the bear market, while Galaxy Digital will be able to expand its own mining capabilities.