• Galaxy Digital, Michael Novogratz’s crypto-focused financial services firm, has agreed to purchase Argo’s Helios Bitcoin (BTC) mining facility and provide an additional $35 million loan to help with restructuring efforts.
• As part of the deal, Galaxy will give Argo a new asset-backed loan in an aggregate principal amount of $35 million with an initial term of 36 months.
• Argo will use the cash proceeds from the sale of Helios to repay existing debts, prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance.
Michael Novogratz’s Galaxy Digital has announced an investment of $100 million to help save Argo Blockchain’s Bitcoin mining firm, Helios, from bankruptcy. The crypto-focused financial services firm will purchase the mining facility and provide a $35 million loan to assist with restructuring efforts.
The loan is structured as an asset-backed loan with an initial term of 36 months and will be secured by a collateral package that includes the mining machines currently running at Helios, as well as machines located at Argo’s Canadian data centers. This loan will help reduce Argo’s debt by $41 million and provide them with a stronger balance sheet and enhanced liquidity to ensure continued operations through the bear market.
In addition to the loan, Galaxy will host Argo’s 23,619 Bitmain S19J Pro mining machines located at Helios for two years. The companies plan on optimizing their operations with the lower capex and opex requirements that the new setup will provide.
The cash proceeds from the sale of Helios, as well as a portion of the borrowings under the asset-backed loan, will be used to repay existing debts, prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance. A collateral account controlled by NYDIG ABL LLC will return $6 million to the company upon repayment.
The investment from Galaxy Digital and the restructuring of Argo’s debts will provide the company with a much-needed financial lifeline. Peter Wall, Argo’s Chief Executive, is optimistic that the investment will help the firm to continue operations in the bear market and to stay competitive in the future. This news is encouraging for the industry as a whole, as it demonstrates that there are still opportunities to invest in Bitcoin mining despite the current market conditions.