After a financial agreement with Galaxy Digital, mining giant Argo Blockchain manages to narrowly avoid bankruptcy. According to data put forward by the company, the latter represents more than 1% of the computing power deployed on the Bitcoin (BTC) network.
Argo Blockchain Avoids Bankruptcy Through Deal With Galaxy Digital
While Argo Blockchain considered itself close to bankruptcy just a fortnight ago, the mining giant has found a solution with the investment company specializing in the Galaxy Digital cryptocurrency ecosystem. For this, the company sells part of its mining facilities to its partner, namely those responding to the name of Helios, located in Dickens County, Texas.
The agreement carries on a transaction worth 65 million dollarswhich will allow Argo Blockchain to take out a loan from Galaxy Digital for up to $35 million, for an initial term of 36 months.
Said loan will be backed by 23,619 Bitmain S19J Pro mining machineslocated on the Helios site, which remain in the possession of Argo Blockchain, as well as “some machines» located on a site in Canada. The funds raised by the operation will repay more than $84 millionwhich had been borrowed from NYDIG ABL and North Mill Commercial Finance.
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An activity that continues despite everything
For machines located on the site acquired by Galaxy Digital, these will continue to operate, thanks to a rental contract agreed between Argo Blockchain and the new owners of the premises. In addition, Argo Blockchain will benefit from the electricity tariffs that Galaxy Digital will have negotiated on its side with a supplier.
This installation is substantial, in the sense that it would deploy a computing power of 2.36 exahashes per second, which represents approximately 1% of the total hashrate securing the Bitcoin blockchain (BTC) to date, according to data from the CoinWars site. In total, Argo Blockchain would be able to deliver 2.5 exahashes per second on the network thanks to all of its facilities.
In view of this operation, Argo Blockchain has also requested the suspension of the listing of its share on Nasdaq. This should resume today thanks to the conclusion of this agreement. While writing these lines, ARBK stock trades for $0.54 per unit around.
👉 Also in the news – Price of Bitcoin (BTC) mining machines down 80%
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Source: Argo Blockchain
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