Galaxy Digital, Michael Novogratz's crypto-focused financial services firm will buy Argo's Helios Bitcoin (BTC) mining facility and provide an additional $35 million loan to help with restructuring efforts.

This was announced in an official press release published by Argo Blockchain.

As a part of the deal, Galaxy will give Argo a new asset-backed loan in an aggregate principal amount of $35 million with an initial term of 36 months. This particular financing will be secured by a collateral package that includes mining machines currently operating at Helios, as well as some machines located at Argo’s Canadian data centers.

Peter Wall, Argo’s Chief Executive, said, "This transaction with Galaxy is a transformational one for Argo and benefits the Company in several ways. It reduces our debt by $41 million and provides us with a stronger balance sheet and enhanced liquidity to help ensure continued operations through the ongoing bear market. It also allows us to focus on optimizing our operations with significantly lower capex [capital expenditures] and opex [operating expenses] requirements."

Argo said it would use the cash proceeds from the sale of Helios, as well as a portion of the borrowings under the asset-backed loan, to repay existing debts, prepayment interest, and other fees of approximately $84 million owed to NYDIG ABL LLC and $1 million to North Mill Commercial Finance. Some $6 million will be returned to the company upon this repayment from a collateral account controlled by NYDIG ABL LLC.

Galaxy will host Argo’s 23,619 Bitmain S19J Pro mining machines located at Helios for two years. The companies plan on working together on the transition at Helios in order to minimize disruption to operations, said the