Crypto Miner Argo Will Avoid Bankruptcy With $100M Bailout from Galaxy

Bitcoin mineArgo Blockchain (ARBK) will avoid filing for bankruptcy protection, after it agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital (GLXY) for $65 million.

The miner will also get a new $35 million loan from Mike Novogratz's crypto-focused financial services firm, which will be secured by Argo's mining equipment, according to a statement.

"Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load, and maintain access to the unique power grid in Texas," said Argo's CEO Peter Wall. "This deal with Galaxy achieves all of these goals, and it lets us live to fight another day," he added.

The transaction will help Argo bolster its balance sheet and avoid bankruptcy after it found itself in a precarious situation when a deal for $27 million in funding fell through in October. Earlier this month, the miner said that it was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy.

The deal was structured to boost Argo's balance sheet and capital structure, Chris Ferraro, president and chief investment officer at Galaxy, said. "We were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities," he added.

"Quality infrastructure and access to low-cost energy are the cornerstones of a successful mining operation, making the acquisition of Helios an incredible milestone for the growth of Galaxy's mining business," said Amanda Fabiano, Head of Mining at Galaxy, in the statement.

(Source: CoinDesk)