Galaxy Digital Provides $35M Loan to Argo Blockchain to Restructure Debt

• Galaxy Digital, Michael Novogratz’s crypto-focused financial services firm, will buy Argo’s Helios Bitcoin (BTC) mining facility and provide an additional $35 million loan to help with restructuring efforts.
• Galaxy will give Argo a new asset-backed loan in an aggregate principal amount of $35 million with an initial term of 36 months. This financing will be secured by a collateral package that includes mining machines currently operating at Helios, as well as some machines located at Argo’s Canadian data centers.
• Argo said it would use the cash proceeds from the sale of Helios, as well as a portion of the borrowings under the asset-backed loan, to repay existing debts, prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance.

Galaxy Digital, the crypto-focused financial services firm owned by Michael Novogratz, has recently announced that it will purchase Argo Blockchain’s Helios Bitcoin (BTC) mining facility and provide a loan of $35 million to aid in its restructuring efforts. This move is part of an effort to prevent the firm from becoming bankrupt.

The loan will be an asset-backed loan with an aggregate principal amount of $35 million and an initial term of 36 months. It will be secured by a collateral package that includes mining machines operating at Helios, as well as some machines located at Argo’s Canadian data centers. This loan will allow Argo to focus on optimizing its operations with significantly lower capital and operating expense requirements.

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

Galaxy Digital will host Argo’s 23,619 Bitmain S19J Pro mining machines located at Helios for two years. The companies plan on working together to optimize mining operations and maximize profits.

The move is beneficial to Argo in several ways. It reduces the company’s debt by $41 million and provides it with a stronger balance sheet and enhanced liquidity to ensure the continued operations during the bear market. It also provides Argo with the opportunity to focus on optimizing its operations while reducing capital and operating expenses.

This move by Galaxy Digital shows their commitment to helping the crypto industry grow by providing financial support to struggling firms. The increased liquidity and reduced debt will give Argo the chance to focus on its business operations and become profitable again.