What Happened: Under terms of the agreements, an Argo subsidiary will sell its Helios facility in Texas for $65 million and refinance its asset-backed loans. Additionally, Galaxy has agreed to host Argo's mining machines located at Helios. The transactions are expected to close on Wednesday.
Galaxy will provide Argo with a new asset-backed loan in an aggregate principal amount of $35 million with an initial term of 36 months. Galaxy also intends to enter into a fixed-price power purchase agreement with a licensed retail electricity provider to procure electricity for the mining facility.
"This transaction … reduces our debt by $41 million and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market. It also allows us to focus on optimizing our operations with significantly lower capex and opex requirements," said Peter Wall, CEO of Argo Blockchain.
Argo is a blockchain technology company focused on large-scale cryptocurrency mining of top assets like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH). In light of the transaction with Galaxy, Argo will not report earnings results for the third quarter at this time.
ARBK Price Action: Argo Blockchain has a 52-week high of $13.26 and a 52-week low of 36 cents.
The stock was up 39.2% at 75 cents at time of publication, according to Benzinga Pro.
Photo: Pete Linforth from Pixabay.