Galaxy Digital has agreed to pay $65 million for Argo Blockchain’s bitcoin mining facility Helios, the two companies announced on Wednesday.
Galaxy will also acquire “related operations” from Argo Blockchain as part of the deal. Galaxy will also make a $35 million loan to Argo as the company restructures, secured by a collateral package containing Argo mining equipment. Argo will retain ownership of its machines at the Dickens County, Texas, facility and will enter into a two-year hosting agreement with Galaxy to host its mining machines there. Not only will Galaxy’s mining operations expand as a result of this agreement, but Argo will also avoid bankruptcy. The transaction will “strengthen Argo’s balance sheet” and improve the company’s liquidity position, allowing it to “continue operations,” according to a statement from Argo.