• Argo Blockchain (ARBK) has agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million and received a new $35 million loan from investor Michael Novogratz’s crypto-focused financial-services firm.
• The transaction will help Argo bolster its balance sheet and avoid bankruptcy after a deal for $27 million in funding fell through in October.
• Argo also entered into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility.

Argo Blockchain (ARBK) has come to an agreement to avoid filing for bankruptcy protection, after agreeing to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million. The miner also received a new $35 million loan from noted investor Michael Novogratz’s crypto-focused financial-services firm, which will be secured by Argo’s mining equipment, according to a statement sent to CoinDesk.

The transaction will help Argo bolster its balance sheet and avoid bankruptcy after a deal for $27 million in funding fell through in October. Earlier this month, the miner said that it was in advanced negotiations to sell some of its assets and carry out an equipment financing transaction to avoid filing for Chapter 11 bankruptcy.

Speaking to CoinDesk, Argo CEO Peter Wall said: “Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load and maintain access to the unique power grid in Texas. This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.”

In addition to the sale of the Helios facility, Argo also entered into a two-year hosting agreement with Galaxy, securing a place for Argo’s computers to keep mining at the Helios facility, according to the statement. This hosting agreement will enable Argo to maintain their presence in the Texas power grid, which is an essential component of their operations.

Meanwhile, Chris Ferraro, President and Chief Investment Officer at Galaxy, said: “The deal with Galaxy was structured to boost Argo’s balance sheet and capital structure. When the miner kicked off its process, we were in a position to solve the problem completely for Argo, while accelerating the expansion of our own mining capabilities.”

The news of the deal saw Argo’s shares more than double in early London Stock Exchange trading. On Tuesday, the company requested a 24-hour suspension of trading in its Nasdaq-listed shares.

Argo Blockchain is a London-based cryptocurrency mining company that provides cloud-based mining services for users worldwide. The company is one of the few crypto miners to achieve profitability in recent months, despite the ongoing bear market. The miner had previously announced plans to expand its operations and increase its capacity with the purchase of new mining rigs by the end of 2019.

The new deal with Galaxy will provide much-needed capital to help the miner weather the storm of the bear market and continue to expand its operations. It is a welcome development for the industry and a testament to the resilience of the crypto mining sector.

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