The Bitcoin mining crisis continues as miners continue to sell their facilities. Argo Blockchain saw its shares rise in London trading yesterday after agreeing to sell its Bitcoin mining facility, Helios, to Galaxy Digital Holdings for around $65 million, providing some relief for the struggling company.
As part of the deal, Galaxy also agreed to provide Argo with a first-rank secured loan of $35 million, backed by a set of mining equipment collateral. The transactions will reduce Argo’s debt by $41 million.
Bitcoin miners like Argo have struggled with the combination of falling cryptocurrency prices and rising electricity costs, plunging the sector into turmoil. In October, the London-based company warned that it would have to shut down or limit its activities without additional funding. Several other miners have recently gone bankrupt or reported financial difficulties.
Argo started operations at the Helios facility in Dickens County, Texas in May. Helios has a capacity of 800 megawatts to power Bitcoin mining operations, making it one of the largest sites in the state. It employs around forty people.
With the ongoing crisis in the Bitcoin mining industry, it is not surprising to see companies like Argo selling off their facilities and seeking additional funding. The sale of the Helios facility and the secured loan from Galaxy will provide some much-needed relief for Argo, but it remains to be seen how long this reprieve will last in the volatile and uncertain world of cryptocurrency mining.