Shares of Argo Blockchain are sharply up in the UK and the US after the bitcoin miner secured a $100 million bailout deal with Galaxy Digital. Argo will sell its flagship Helios mining facility to Galaxy for $65 million and receive $35 million in an asset-backed loan from Mike Novogratz’s firm.

Argo’s US-listed Shares Up 50% in Premarket Trading

Shares of Argo Blockchain are up more than 100% on the London Stock Exchange (LSE) on Wednesday after the beleaguered bitcoin miner inked a $100 million bailout deal with Mike Novogratz’s Galaxy Digital. Argo’s US-listed shares also jumped significantly in premarket trading, up 46.8%.

The deal will help Argo avoid filing for Chapter 11 bankruptcy protection after the mining firm agreed to sell its Helios mining unit to Galaxy Digital for $65 million. Furthermore, Argo will receive a $35 million loan from Galaxy, which will be secured by its mining rigs.

“Over the last few months, we have been looking for a way to continue mining through the bear market, reduce our debt load, and maintain access to the unique power grid in Texas. This deal with Galaxy achieves all of these goals, and it lets us live to fight another day.”

– Peter Wall, CEO of Argo Blockchain.

Argo also agreed on a 2-year hosting deal with Mike Novogratz’s financial services firm that will allow the troubled crypto miner to keep mining at the Helios plant. Galaxy’s CIO and President Chris Ferraro said the deal aims to prop up Argo’s finances and capital structure.

Argo will use the proceeds from the Helios sale and the asset-backed loan to settle all existing debts, prepayment interest, and other fees, including $84 million and $1 million the firm owes to NYDIG ABL LLC and North Mill Commercial Finance, LLC, respectively. After repaying the debt, Argo will receive about $6 million from a collateral account controlled by NYDIG ABL LLC. Argo repaid its $6.7 million debt to Galaxy Digital in November.

Argo’s Stock Resumes Trading Following a 24-hour Suspension

The new transaction allows Argo to keep its business operations afloat after the mining firm failed to complete a $27 million funding deal in October. It also warned it could have a negative cash flow, deterring new investors.

The move comes just a day after Argo requested a 24-hour suspension of trading of its US-listed shares ahead of a major announcement containing “inside information and includes forward-looking statements.” The firm’s shares continued regular trading today.

The trading of the company’s London-listed was also ceased earlier this month after the crypto miner accidentally published draft materials showing the firm was voluntarily filing for bankruptcy protection in the US. Argo downplayed the leak, saying it was in “advanced” talks with a third party to sell some assets and raise equipment financing.

This article originally appeared on The Tokenist

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