Argo Bitcoin miner acquires $100M from Galaxy Digital to avoid bankruptcy

Sahana Kiran
Source – Unsplash

As seen throughout the year, bankruptcies have been increasingly common in the crypto industry. The Bitcoin [BTC] mining ecosystem in particular lost quite a bit. Prominent miner Core Scientific recently filed for bankruptcy. While Argo Blockchain hinted at the possibility of going bankrupt, Mike Novogratz’s Galaxy Digital came as its saving grace.

According to recent reports, Argo Blockchain will not be filing for bankruptcy protection. This news comes after the firm put its Helios mining facility in Dickens Country, Texas on sale. Novogratz’s crypto firm will be buying this mining facility for $65 million. In addition to this, Argo will also receive a loan of $35 million.

Furthermore, Argo will sign a two-year hosting deal with Galaxy, guaranteeing a location for Argo’s computers to continue mining at the Helios facility. It should be noted that Helios is Argo’s biggest mining facility. It entails a whopping 180 megawatts [MW] worth of power capacity.

Through this, Bitcoin miner Argo hopes to avoid bankruptcy as it would boost its balance sheet. Galaxy Digital would certainly benefit from this deal as Argo intends to advance to 800 megawatts of energy usage along with 20 exahash/second (EH/s) of computing power. Galaxy Digital could soon emerge as one of the biggest Bitcoin mimers since Core Scientific has taken a backseat.

Speaking about the latest deal, Peter Wall the CEO of Argo 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.”

Will Argo Blockchain make a comeback on Nasdaq?

Yesterday, Argo Blockchain announced that it put forth a request to suspend its trading on the U.S. market. Argo Blockchain was listed on Nasdaq under the ticker symbol ARBK. Amidst restructuring and bankruptcy rumors the platform decided to take this decision. However, with its recent funding from Galaxy Digital, Argo is expected to make a comeback.

At press time, recent details pertaining to ARBK weren’t available on Nasdaq.