Bitcoin mining company Argo Blockchain will sell its mining facility in Texas for $65 million to Mike Novogratz's venture firm Galaxy Digital as the company seeks new options to enhance liquidity.
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Argo said in a press release that under the agreement, Galaxy Digital will host Argo's mining machines located at Helios. Galaxy will also provide Argo with a new $35 million loan with an initial term of 36 months, secured by a collateral package of 23,619 Bitmain S19J Pro mining rigs.
Argo plans to use the funding to repay all existing "indebtedness, prepayment interest, and other fees" owed to NYDIG and North Mill Commercial Finance. Amid the news, Argo's shares (ARBK) jumped by almost 11% to $0.59 on Nasdaq.
In late October, the London-headquartered company wrote in an open statement to shareholders that it failed to raise $27 million from its strategic shareholder. The company acknowledged it might become "cash flow negative" in the near term if it fails to attract fresh capital.
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