Argo Blockchain, a Bitcoin mining company, said it had entered legal contracts with Galaxy Digital Holdings. Under the terms of the deal, Argo’s company would sell its Helios facility in Dickens County, Texas, for $65 million.
As stated in the announcement, Galaxy will also house Argo’s mining equipment at Helios. In addition, to restructure its asset-backed loans, it will get a new loan of $35 million for 36 months.
Additionally, as collateral, Helios is employing 23,619 Bitmain S19J Pro mining machines and specific machines situated at Argo’s data centres in Canada.
Argo Blockchain’s stock has dropped by more than 90% this year because of high electricity expenses and dropping Bitcoin prices.
Furthermore, owing to the two-year hosting contract with Galaxy, the Bitcoin miner can reduce any mining equipment downtime caused by the sale of the Helios facility.
The earnings from the sale of Helios, as well as a portion of the loan amount, is going to repay the loan ($84 million) as well as the interest ($1 million).
Additionally, upon repayment, a collateral account held by NYDIG ABL LLC will transfer $6 million to the organization.
As per Argo’s CEO, Peter Wall, the arrangement with Galaxy is revolutionary for the firm and helpful in a wide range of ways.
Argo CEO Peter Wall said:
It reduces our debt by $41 million (£34 million) and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market.
Per the Argo, The business will now concentrate on developing and optimising operations at its two Quebec data centres, which will use low-cost hydroelectricity in operating.
Argo Blockchain Suspension For 24 Hours
Bitcoin mining firm Argo has requested that trade in its shares and unsecured notes on the NASDAQ stock market be suspended until Wednesday.
Argo Blockchain tweeted yesterday that Nasdaq has temporarily halted trading in its American depositary shares (ADS). Because of today’s announcement, the business has declared that trade must be halted.
At our request, @Nasdaq temporarily suspended trading of Argo’s ADSs and unsecured notes for today – Tues Dec 27.
— Argo (@ArgoBlockchain) December 27, 2022
The decision comes at a time when the company is facing difficulties by financial troubles and has been the subject of bankruptcy rumours due to rising energy costs and dropping Bitcoin BTC prices.
The team denied the rumours, stating that it had not yet declared bankruptcy. Therefore, but accepting that it might not have enough funds in the next month to continue operating.
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Furthermore, because its shares had gone below $1 for 30 straight days, it declared last week that Nasdaq would be paying it more negative attention. If the company’s stock price does not achieve $1 during the next 180 days, Nasdaq will delist Argo Blockchain.
New RNS: we received notice from @Nasdaq as our ADSs have closed below $1 for 30 trading days
We have 180 days to cure this deficiency
No impact to our operations or LSE listing, and no impact to our ongoing negotiations
— Argo (@ArgoBlockchain) December 16, 2022