Michael Novogratz’s Galaxy Digital is paying $65 million for Argo’s Helios Bitcoin mining facility, and $35 million as a restructuring loan.

Argo Blockchain (NASDAQ: ARBK) and Galaxy Digital Holdings Ltd (TSX: GLXY) have agreed a $100 million deal that covers the sale of a bitcoin facility to Galaxy for $65 million and a $35 million restructuring loan to Argo. (Argo)

A subsidiary of Argo will sell the flagship Helios facility in Dickens County, Texas for $65 million and refinance its asset-backed loans. This will reduce Argos’ indebtedness by about $41 million and as well simplify the company’s operating structure, improve its liquidity and balance sheet and ensure a continuation of operations.

Additionally, Galaxy has agreed to host Argo’s mining machines located at Helios. Note that Argo will maintain ownership of all mining machines.

Another $35 million loan from Galaxy to Argo will be secured by a collateral package that includes 23,619 Bitmain S19J Pro mining machines currently operating at Helios and certain machines located at Argo’s Canadian data centers.

“The cash proceeds received from the sale of Helios, along with a portion of the borrowings under the asset-backed loan, will be used to repay all existing indebtedness, prepayment interest, and other fees of approximately $84 million and $1 million, owed to NYDIG ABL LLC and North Mill Commercial Finance, LLC, respectively,” Argos stated.

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