Bitcoin miner Argo Blockchain will avoid filing for bankruptcy protection after it agreed to sell its Helios mining facility in Dickens Country, Texas, to Galaxy Digital for $65 million.
According to a statement given to CoinDesk, the miner will also receive a new $35 million loan from Mike Novogratz’s crypto-focused financial services firm, which will be backed by Argo’s mining equipment.
The sale will assist Argo in strengthening its balance sheet and avoiding bankruptcy after a plan for $27 million in funding fell through in October. Earlier this month, the miner announced that it was in advanced talks to sell some of its assets and complete an equipment financing transaction in order to avoid Chapter 11 bankruptcy.
According to the release, Argo will also engage into a two-year hosting arrangement with Galaxy, assuring a spot for Argo’s computers to continue mining at the Helios facility.
In early London Stock Exchange trading, the crypto miner’s shares (ARB) more than doubled. The company requested a 24-hour suspension of trade in its Nasdaq shares (ARBK) yesterday, while the London market was closed for a bank holiday in the United Kingdom.
Argo is one of numerous miners fighting to stay afloat as growing energy prices drive up costs while bitcoin prices remain persistently low. Core Scientific (CORZ), one of the top miners by processing power, declared bankruptcy last month, while Compute North, another major player in the industry, declared Chapter 11 bankruptcy in late September. Greenidge, a bitcoin miner, recently announced a debt restructuring agreement with its lender NYDIG, while the company still faces bankruptcy.