Bitcoin Miner Argo Blockchain repays $35 million Galaxy Digital bailout Loan

Cryptocurrency mining firm Argo Blockchain has repaid its $35 million Galaxy Digital bailout loan.

According to a company filing dated August 12, bitcoin miner Argo Blockchain completed repaying the $35 million it borrowed from asset manager Galaxy Digital in 2022 to avoid bankruptcy during the bear market for cryptocurrencies that year.

Argo CEO Thomas Chippas said in a statement that the repayment is "a significant milestone for Argo" and that it was completed "without any meaningful impact to Argo's hashrate."

Argo barely avoided bankruptcy in December 2022 after reaching an agreement with Galaxy on a number of issues, including the sale of its Helios Bitcoin mining facility in Dickens County, Texas, which is worth $65 million, and a $35 million loan to refinance its debt.

Argo stated that its "23,619 Bitmain S19J Pro mining machines currently operating at Helios and certain machines located at Argo's Canadian data centers" served as collateral for the loan. In exchange for continuing to operate its Bitcoin mining machinery, Argo agreed to lease back space in Helios.

As per its 2023 annual report, Argo has been expanding its mining capabilities ever since. During the third quarter of 2023, it deployed approximately 2,750 BlockMiner machines from ePIC Blockchain Technologies.

With a half-year net loss of $18.8 million in 2023, down over 50% from a net loss of $39.6 million in H1 2022, the Argo Blockchain mining company is among several businesses that have struggled in the face of unfavorable market conditions and a fiercely competitive mining ecosystem. Additionally, Argo reports that, as of 2023, its debt has decreased by $4 million, totaling $75 million. After owing $143 million in June 2022, the company has reduced its debt by $68 million.

Argo Blockchain announced on July 31, 2024, that it would be privately placing its common shares and warrants to an institutional investor. An estimated £6.5 million ($8.3 million) in gross proceeds are anticipated from the transaction.

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