Galaxy Digital to save Argo Blockchain.

Argo Blockchain, a cryptocurrency mining company based in London, has been able to turn the tide thanks to its most recent partnership with Galaxy Digital, a cryptocurrency investment business led by Mike Novogratz. The struggling cryptocurrency miner has negotiated a rescue package worth $100 million, which includes the sale of assets and the establishment of a credit line.

Argo Blockchain has an asking price of $65 million for the sale of Helios.

The conclusion of what has been referred to as “transformational strategic transactions with Galaxy Digital Holdings, Ltd.” was revealed in an announcement made by Peter Wall, the CEO of Argo Blockchain.

Among these is the sale of Argo’s most productive mining site, Helios, which was located in Texas. Galaxy Digital is going to spend £54 million ($65 million) to acquire Helios, which will result in the subsidiary being the company’s primary mining operation.

Following the completion of the deal, Wall has made it clear that Argos will continue to own all mining machines and that Helios would continue to provide hosting for those machines. “Remaining at Helios will also enable us to continue accessing power through the Texas grid and taking part in the ancillary services,” he went on to say after the previous point was made.

In addition, the deal includes a loan of $35 million to Argo, which will be used to refinance the company’s existing asset-backed debts. Because of this transaction, Argo Blockchain’s liabilities will be reduced by $41 million, which will provide a much-needed boost to the company’s operations.

According to the official press release, “Transactions will strengthen Argo’s balance sheet, improve Argo’s liquidity position, and enable the Company to continue operating.”

The new transaction will assist Argo in avoiding going bankrupt.

Due to the company’s current cash challenges, filing for bankruptcy was beginning to appear like a very serious option; thanks to this arrangement, Argo Blockchain would be able to avoid this fate, which was starting to look like a very real possibility.

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The chief executive officer of the mining company referred to it as the “only visible path forward” as the company works its way through a vicious bear market that has driven several of the company’s competitors out of business in its wake.

In the earlier part of this year, in October, the company was looking for a capital injection of up to $27 million. As a result of the failure of this plan, Argo issued a warning that the company would have a negative cash flow and might be required to discontinue operations.

The agreement with Galaxy Digital has resulted in a significant increase in the share price of Argo Blockchain. According to information obtained from the website of the London Stock Exchange (LSE), the price of the stock has increased by more than 102% since the previous market closing on December 23. In anticipation of this disclosure, the company put in a request to halt trading in the United States for a period of one day.

Even though the percentage value of Argo’s share price appreciation could make one feel upbeat, it is essential to take into account that the returns for the year-to-date (YTD) are currently in the negative; to be exact, they are -91.8%.

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