By Richard Hines
Following the risk of declaring bankruptcy faced by the bitcoin mining crypto firm Argo Blockchain, Galaxy Digital has announced that it would be acquiring Argo’s mining infrastructure in Texas for the sum of $65 million, as well as a fresh loan to the tune of $35 million.
Argo Blockchain To Be Bailed Out by Galaxy Digital
Will Foxley of Compass Mining recently announced that he might have accidentally received a piece of information indicating that Argo Blockchain was going through a pretty hard time, just like several other crypto firms have done.
However, it seems that Argo Blockchain is about to be freed of that burden as Galaxy Digital is set to acquire its mining infrastructure located in Texas for the sum of $65 million as well as give out a fresh loan of $35 million to the company.
In a recent interview, Argo Blockchain’s chief executive officer, Peter Wall, expressed how lucky his company is to have gotten this offer from Galaxy Digital.
Citing the unfavourable state of the crypto industry currently, maintaining the company’s access to Texas’s energy supply, and keeping the company’s head above water as regards its long strain of debts, Argo has been going through a pretty rough time.
However, with the new arrangement with Galaxy, he strongly believes that Argo will weather through the storms.
According to the agreement, it also appears that Argo will continue to use the Helios infrastructure that is being acquired by Galaxy for a period of two years.
The agreement is meant to bolster Argo’s finances, and according to Chris Ferraro of Galaxy Digital, why not help Argo if they could also benefit as well? As it is, Argo has requested the halt of its Nasdaq ARBK for a period of 24 hours.
The Bear Situation In The Crypto Market
Argo Blockchain, which is arguably one of the leading mining companies in the industry, is not the only one struggling with keeping activities running; in fact, several other mining firms are in the same boat as Argo.
Core Scientific, Compute North, and a host of others have at one point or another filed for bankruptcy, which has caused some investors like Galaxy Digital to have the opportunity to acquire assets at really affordable prices.
According to Chris Ferraro, Galaxy Digital has even bigger plans to further establish itself as an authority in the future decentralised crypto space.