Galaxy Digital recently acquired the Helios Bitcoin Mining Facility, famously known for the Argo blockchain, with the recent $100 million deal. This is a win-win for both companies as the Bitcoin mining facility is on the verge of bankruptcy, with the acquisition being its savior amidst its downfall in the market, with the company fighting to live another day.
The cryptocurrency industry is in a massive slump now, and the continuous decline it sees highly affects the different companies, coins, and investors.
Galaxy Digital Acquires Argo, Helios Bitcoin Mining
(Photo : Galaxy Digital Newsroom)
According to a release by Galaxy Digital, the company completed its acquisition of the Helios Bitcoin Mining Facility for $65 million, from the Argo Blockchain. It is only one part of the company's agreements, one that centers on future partnerships of both, centering on cryptocurrency to propagate its future digital ventures.
Argo also offered a two-year hosting agreement with Galaxy Digital on this deal, focusing on its mining machines in Dickens, Texas. However, Argo still gets to keep this facility under its company.
This deal also helps Galaxy Digital grow its mining operations and ventures in the cryptocurrency industry, with the many deal inclusions from Argo.
Argo Faced Possible Bankruptcy, Now Safe
In the past months, Argo was knee-deep in a $41 million loan on its name, with this Galaxy Digital deal helping them out.
Argo will receive as much as $35 million in loans from Galaxy to further improve their situation, one that helped it avoid bankruptcy.
According to Argo, this new money will help the company's strategic recuperation from its previous state, improve its liquidity position, and improve its balance sheets.
Cryptocurrency and its Decline
There are still believers in digital currencies now, and people are hopeful for their future rise, but the many declining statistics in the cryptocurrency market are a massive implication of its current track. Companies like FTX which borrowed money from subsidiaries and other investors have proven that it is on their way to bankruptcy.
Another company called Genesis Global also made these loans from sister companies to avoid its demise and keep its operations afloat.
However, band-aid solutions are not permanent and can completely turn over the hardships of the industry.
US regulators are now on their way to focus on crypto regulations for all, and it aims to avoid the same ending for other trading platforms with the likes of Sam Bankman-Fried's FTX.
There were speculations for a bearish industry for the latter half of the year, but it did not turn up for these coins and companies engaging in the digital currency. It almost put Helios and Argo on the same route as the bankrupted companies, but this acquisition from Galaxy Digital saves the day and would be their golden goose for recuperation.
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