About two months ago, Bitcoin mining giant Argo Blockchain had declared itself on the verge of bankruptcy. It was facing numerous economic challenges. Recently, a financial agreement with Galaxy Digital came to save the company, which now accounts for 1% of the computing power securing the entire Bitcoin network.
Argo Blockchain and Galaxy Digital reach agreement
Not so long ago, Argo Blockchain was close to bankruptcy. The mining giant was looking for solutions everywhere to get out of it… Fortunately, Galaxy Digital came quickly to its rescue.
So, this Wednesday, December 28, Galaxy Digital, an investment company specializing in cryptocurrencies has made an agreement with Argo Blockchain. To honor it, the bitcoin mining company will sell part of its mining facilities to its partner.
According to the report, Galaxy Digital will pay $65 million. As a result, it will officially have control over Helios, a facility located in Dickens County, Texas.
In addition, it will also be able to provide Argo Blockchain with a new loan of $35 million, for an initial term of 39 months. This loan will be secured by 23,619 Bitmain S19J Pro mining machines. They are located at the Helios site, which will remain under the control of mining giant Argo Blockchain.
The funds required in this deal will thus allow Agro to repay more than $84 million borrowed from various companies. In particular NYDIG ABL and North Mill.
In fact, Galaxy Digital has just saved Argo Blockchain from filing for the famous Chapter 11 bankruptcy in the United States. Now, the machines will still remain functional. The ones at the Helios site will be under the control of the buyer. In addition, Argo Blockchain will be able to take advantage of electricity that Galaxy Digital will negotiate with its suppliers.
Argo Blockchain’s facilities are of paramount importance. Especially since they deploy a computing power of 2.5 exahashs per second. In the current circumstances of Bear Market and rising energy prices, BTC miners are under pressure and are looking to survive this ordeal at all costs.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.