Argo Blockchain Sells Helios Facility for $65 Million, Reduces Debt by $41 Million

1: argo blockchain has entered into definitive agreements with galaxy digital holdings to sell its helios facility in dickens county, texas for $65 million (£54 million). argo will also receive a new asset-backed loan in an aggregate principal amount of $35 million (£29 million). the transaction will reduce argo’s debt by $41 million (£34 million).

2: argo requested the suspension of trading of its shares and unsecured notes on the nasdaq stock exchange until wednesday. cash proceeds from the sale of its texas facility and a portion of the borrowings under the asset-backed loan will be used to repay its existing debts, prepayment interest, and other fees of approximately $84 million (£70 million) and $1 million (£1 million).

3: argo ceo peter wall said the transaction with galaxy is “transformational” and provides the company with a stronger balance sheet and enhanced liquidity. argo eyed a $27 million fundraise earlier this year, which fell through in october. argo blockchain’s stock has been impacted by rising energy costs and falling bitcoin prices, leading to its stock plummeting over 90% over the course of the year and argo beginning to sell off its bitcoin reserves back in june to fund operating expenses.

By Evey Lovelace

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