Galaxy to acquire Helios Bitcoin mining facility from Argo Blockchain
- Galaxy will acquire the Argo Blockchain facility at Helios for $65 million.
- The companies have also inked a deal for a $35 million loan facility for Argo.
- Galaxy to use the state-of-the-art mining facility to expand its mining capabilities.
Galaxy Digital Holdings Ltd. (TSX: GLXY), a leading digital asset focused financial services and investment management firm, is poised to acquire the Helios facility from cryptocurrency mining giant Argo Blockchain (LON: ARB)
In an announcement on Wednesday, Galaxy revealed the acquisition would be for roughly $65 million and include all Argo-related operations at the Texas-based Helios facility.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Galaxy has also agreed to extend a $35 million senior-secured loan to Argo, with the loan collateralized by among other things Argo’s mining equipment. The two firms have also penned a hosting deal that allows Argo to hold its mining machines at the facility for two years.
The companies expect to close the deal on 28 December, 2022.
Galaxy to expand its mining operations
Galaxy expects to get up to 800 megawatts (MW) of mining capacity from Helios, a transaction that will accelerate Galaxy’s own efforts in expanding its Bitcoin mining operations. This will include the company’s proprietary and hosted BTC mining infrastructure, Galaxy said in the press release.
Commenting on the deal, Galaxy Digital Holdings President and CIO Chris Ferraro said:
“The acquisition of Helios represents a new stage over our two-year journey in bitcoin mining that increases our operating scale and breadth of solutions, creating sustainable value for the biggest decentralized digital asset network and shareholders alike.”
According to the announcement, Galaxy will use Helios as its main mining facility and plans to retain the facility’s operations team.