Wall said that the agreement, which was put under pressure by high energy expenses and the low price of bitcoin, was the “only conceivable road ahead” during the bear market.
According to Cointelegraph, cryptocurrency mining startup Argo Blockchain had to make the painful choice to sell Helios, its flagship mining facility, in order to survive the present bear market.
A deal to sell the Helios facility for $65 million to Mike Novogratz’s Galaxy Digital, a cryptocurrency investment firm, was publicly announced on December 28 by Peter Wall, CEO of Argo Blockchain. According to Cointelegraph, Argo has already begun selling the Bitcoin it has mined to Galaxy in order to pay off the debt.
The new deals, according to the CEO, would improve Argo’s liquidity and operational structure while enabling the company to continue its mining activities and reduce its overall debt by $41 million.
Wall said that the agreement, which was put under pressure by high energy expenses and the low price of bitcoin, was the “only conceivable road ahead” during the bear market.
After failing to obtain $27 million through the subscription for common shares, Argo is now having trouble finding funds. In October, Argo issued a warning that it would have to shut down due to a lack of new funding. Midway through December, Argo reported that it was negotiating the sale of its assets and “engaged in an equipment financing deal” in an effort to avoid filing for bankruptcy.
