A new day for Argo – After a failed $25 million funding deal in October 2022, the mining company Argo Blockchain met some significant financial difficulties. The company needed to find cash quickly to avoid file the balance sheet. She then had to resolve to separate from her largest holding to stay afloat.
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Agro Blockchain sells Helios to Galaxy Digital
Argo Blockchain will not file for Chapter 11 bankruptcy protection. The mining company managed to replenish its cash, by agreeing to sell to Galaxy Digital, to $65 millionits mining facility Helios located in Dickens Country, Texas.
Argo Blockchain is also strengthening its short-term financial capacity, thanks to a $35 million loan, which Galaxy Digital granted him. The loan will be secured by the company’s mining equipment.
In addition to the financial component, the company has also entered into a two-year hosting agreement for its computers, with Galaxy Digital. Thanks to this agreement, its mining machines will then continue to operate in the Helios facility in Texas.
This agreement thus ensures the operational continuity Agro Blockchain activities. Indeed, Helios was the company’s largest facility. Its energy capacity can reach the 180 megawatts.
The rise important of electricity price and the return of the price of Bitcoin under the $17,000 had major consequences on the finances of mining companies during the year 2022. Agro Blockchain must part with a significant part of its assets to deal with the situation. It must sell its largest mining facility to Galaxy Digital, but this sale prevents him from following in the footsteps of Core Scientific.