• Crypto firm “lives to fight another day,” says CEO Wall
• Dickens County jobs stable, swimming pool project
still hopeful, says county judge
In a news release Wednesday, Dec. 28, cryptocurrency miner Argo Blockchain Plc said it has sold its flagship Helios mining facility in Dickens County, Texas, for $65 million. An additional $35 million collateral loan from Galaxy will allow Argo to retain ownership of its mining equipment at Helios.
In the deal with Canada-listed investment management company Galaxy Digital Holdings (TSX: GLXY), Argo will reduce its total indebtedness by $41 million. A new asset-backed loan agreement, in an attempt to avoid filing for bankruptcy, will allow the firm to maintain ownership of all its mining machines, with Galaxy hosting Argo’s fleet of Bitmain S19J Pros at Helios.
CEO Wall: Challenges for crypto
Citing “a perfect storm” of challenges in the crypto industry, including the unexpectedly high cost of electricity in Texas last summer, Argo CEO Peter Wall said it was not an easy decision to sell the Helios facility, which has been “a significant part of our strategy, our vision, our heart and soul over the last couple of years.” Regarding the company’s groundbreaking immersion cooling technology at the Dickens facility, Wall said, “We still believe it is one of the best environments to mine in.”
Wall described Galaxy as “a highquality, institutional participant in the Bitcoin mining space” and one of multiple companies that had expressed interest in acquiring Helios.
Employment, pool remain on track
Regarding the status of local jobs in Dickens County, where Argo currently employs about 40 people, Wall referred questions to the Galaxy communications team.
Spokesperson Sam Cohen, representing both Argo and Galaxy, said, “Galaxy currently has no plans to eliminate staff from Helios. The company is bringing on the approximately 40-person team. Galaxy has also pledged to support the various community commitments Argo has established since it began building Helios in July 2021, including refurbishing the public swimming pool.”
Renovation of Spur’s historic CCC-built swimming pool was Argo’s signature community service project, unveiled in October 2021. Site work had begun in early 2022 but was halted due to supply-chain issues and to seek residents’ input on design features.
Dickens County Judge Kevin Brendle told The Texas Spur that he expects all jobs to continue and that in his “earliest discussions with Galaxy executives is that they intend to accomplish all community commitments made by Argo.” Those issues, Brendle said, were at the top of his list for future discussions with leaders.
Stock rebounds
Since the announcement of the Galaxy acquisition, financial news outlets have reported a rise in stock prices for Argo, which had fallen to averages of less than $1 per share after reports last month that an anticipated major capital deal had fallen through.
Argo news release
Argo’s full news release is available on its Twitter feed and the video statement viewable at https://argoblockchain.com/galaxy-digital-helios-sale
Galaxy news release
Galaxy’s full news release may be viewed at https://www.newswire.ca/news-releases/galaxy-to-acquire-helios-bitcoin-mining-facility-from-argo-blockchain-864890876.html
This is a developing story. The Texas Spur will bring you more as details become available.
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