The Tough Choice: Selling Helios
In a bid to navigate the choppy waters of the bear market, Argo Blockchain has decided to part ways with its flagship mining facility, Helios. The CEO, Peter Wall, announced on December 28 that a deal was struck with Mike Novogratz’s Galaxy Digital for a cool $65 million. It’s like selling your favorite old couch to pay off student loans—except this couch runs on 200 megawatts of electricity and produces Bitcoin.
Financing a Future
Argo isn’t just selling Helios and calling it a day. They’ll also be getting a $35 million equipment financing loan from Galaxy, aimed at slashing their debt down by $41 million. This could be the financial lifebuoy they desperately need amidst rising energy prices and plummeting Bitcoin values. Wall highlighted that this deal was the “only viable path forward.” At this point, even the words “viable path” sound like a life raft in turbulent waters.
Keeping Their Mining Machines
Interestingly, selling Helios doesn’t mean Argo is tossing their mining machines out like yesterday’s takeout. According to Wall, the firm hasn’t sold any of their beloved miners, which will continue to operate at the Helios facility. “Staying at Helios will also allow us to continue to access power through the Texas grid,” he said. Think of it as a tenant still in their apartment after the landlord sells the building. Good luck with the rent, though!
Helios: A Brief History
The Helios facility, which is essentially the crown jewel of Argo’s mining operations, officially opened its gates in May 2022. It’s impressive, boasting 200 MW of electricity and sporting a ‘look-ma-no-hands’ attitude during mining operations. In stark contrast, their other facility in Baie Comeau only manages about 15 MW. Talk about a power difference!
The Financing Struggles
Unfortunately, this decision to sell Helios didn’t come out of the blue. Just months ago, Argo faced the grim reality of potentially closing its doors due to failed financing efforts, including a missed chance to raise $27 million via ordinary shares. It’s a classic case of a company that bit off more than it could chew and is now scrambling to keep its head above water. In mid-December, they were even looking to shed some assets and jump into equipment financing just to avoid bankruptcy. Now, that’s a holiday spirit we can all understand.
