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Argo Blockchain PLC on Wednesday said it has entered into an agreement for a subsidiary to sell its Helios facility to Galaxy Digital Holdings Ltd.
The London-based blockchain technology company said the facility in Dickens County, Texas will be sold for $65 million. Argo said the sale will reduce its debt by $41 million and simplify its operating structure.
Argo said the subsidiary also will refinance asset-backed loans with a $35 million loan from Galaxy. The loan will be backed by Argo’s fleet of 23,619 Bitmain S19J Pro cryptocurrency mining machines currently operating at the Helios site.
The company said Galaxy has agreed to host Argo’s mining machines for a two-year period, but they will remain owned by Argo.
The company said the transaction will improve Argo’s liquidity position, and enable the company to continue its operations. Argo said it plans to refocus efforts on growing its operation in Canada, with its two data centres powered by low-cost hydroelectricity.
Argo shares doubled to 7.17 pence per share on Wednesday morning in London. The stock’s 12-month range is 2.00p to 101.00p.
By Harvey Dorset, Alliance News reporter
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