The two firms announced Wednesday that they had agreed on the acquisition of the facility.
The deal includes the acquisition of "related operations" from the company. A $35 million loan will be provided by the company as it restructures secured by mining equipment. Argo will keep ownership of its machines at the Dickens County, Texas, facility and will enter a two-year hosting agreement withGalaxy to provide a place for its mining machines at the facility
This deal will allow for the growth of the mining operations, as well as avoiding the possibility of bankruptcy. Argo said in a statement that the transaction will strengthen its balance sheet and make it easier to operate.
Peter Wall, the CEO of Argo, said in a statement that the financing would help reduce the company's debt by $41 million.
The market faces significant downturns due to energy rising prices and miner revenues dropping which has tightened margins and increased profit losses.
Bitcoin miners say energy efficiency and regulatory certainty are crucial for the industry’s success
Core Scientific, one of the largest publicly traded firms in the U.S., filed for Chapter 11 reorganization last week. The firm raised $385 million in strategic funding seven months before it filed for Chapter 11.
The transaction will give access to tax-efficient mining infrastructure and reduce reliance on third-party hosting providers.
Even though some miners are struggling, the acquisition of the second facility that it will own and operate, as well as the first proprietary mining site that was announced earlier this year, shows that the company is serious about growing its mining operations.
Chris Ferraro, president and chief investment officer at the company, said in a release that the acquisition is a new stage for the company.
On the London Stock Exchange, the company's shares rose 77.41%. In the same time frame, the price of the digital currency was $16,750.
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