Crypto investment firm Galaxy Digital is acquiring the main facility of Bitcoin (BTC) miner Argo Blockchain for $65 million.
According to Argo, billionaire Mike Novogratz’s crypto investment firm is buying the mining facility known as Helios in Dickens Country, Texas, as well as providing the struggling company with a $35 million loan.
Argo was thrown into financial troubles when Bitcoin’s price plummeted this year. With the sale, Argo can avoid filing for bankruptcy protection.
Says Argo CEO Peter Wall,
“This transaction with Galaxy is a transformational one for Argo and benefits the company in several ways. It 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.”
Helios, which began operations in May 2022, can operate up to 180 megawatts (MW) of mining capacity on the 160-acre campus. About 40 employees manage the daily operations.
Galaxy praised the deal, saying it will bring significant growth to its mining operations.
Says Chris Ferraro, Galaxy president and chief investment officer,
“Galaxy is aspiring to be one of the most trusted nodes of the decentralized future. The acquisition of Helios represents a new stage over our two-year journey in Bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital asset network and shareholders alike.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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Featured Image: Shutterstock/Philipp Tur