Galaxy Digital Invests $35M Into Argo Blockchain to Help Restructure Operations

• Galaxy Digital, Michael Novogratz’s crypto-focused financial services firm, has bought Argo’s Helios Bitcoin (BTC) mining facility and provided an additional $35 million loan to help with restructuring efforts.
• The cash proceeds from the sale will be used by Argo to repay existing debts and prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance.
• Galaxy will host Argo’s 23,619 Bitmain S19J Pro mining machines located at Helios for two years.

Michael Novogratz’s crypto-focused financial services firm, Galaxy Digital, recently announced that it would be buying Argo’s Helios Bitcoin (BTC) mining facility and providing an additional $35 million loan to help with restructuring efforts. This move comes as part of a larger effort by Argo to reduce its debt and improve its balance sheet and liquidity.

The cash proceeds from the sale of Helios, along with a portion of the borrowings under the asset-backed loan, will be used to repay existing debts and prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance. Additionally, $6 million will be returned to the company upon this repayment from a collateral account controlled by NYDIG ABL LLC.

Galaxy will host Argo’s 23,619 Bitmain S19J Pro mining machines located at Helios for two years. Peter Wall, Argo’s Chief Executive, noted that this “transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market. It also allows us to focus on optimizing our operations with significantly lower capex [capital expenditures] and opex [operating expenses] requirements.”

The announcement marks a major development in the ongoing efforts to help Argo Blockchain restructure its operations, and given the impact of the ongoing bear market, it remains to be seen what the future holds for the company. Nonetheless, the move by Galaxy Digital to invest in Argo is a positive sign and could help the company turn its fortunes around.