Galaxy Digital Holdings Ltd. (TSX:GLXY) entered into definitive agreement to acquire Helios bitcoin mining facility and its related operations from Argo Blockchain plc (LSE:ARB) for $65 million on December 28, 2022. In connection with the transaction, Galaxy has agreed to provide Argo with a new senior-secured loan valued at $35 million, secured by a collateral package that includes Argo mining equipment. Under a two-year hosting agreement with Galaxy, Argo’s 23,619 Bitmain S19J Pro mining machines currently operating at Helios will remain in operation at Helios. The cash proceeds received from the sale of Helios, along with a portion of the borrowings under the asset-backed loan, will be used to repay all existing indebtedness, prepayment interest, and other fees of approximately $84 million and $1 million, owed to NYDIG ABL LLC and North Mill Commercial Finance, LLC, respectively. Galaxy intends to retain the entire Helios operations team of 40 employees. Upon receipt of certain approvals, the transaction is expected to close on December 28, 2022. Galaxy Investment Banking acted as financial advisor to Galaxy and Kirkland & Ellis LLP acted as legal advisor to Galaxy. McDermott Will & Emery LLP and Fladgate LLP acted as legal advisers to Argo. Stifel GMP acted as a financial adviser, and Berkeley Research Group, LLC provided secondary independent financial advice to the Argo. Houlihan Lokey acted as the financial adviser to Argo’s Board of Directors.
Galaxy Digital Holdings Ltd. (TSX:GLXY) completed the acquisition of Helios bitcoin mining facility and its related operations from Argo Blockchain plc (LSE:ARB) on December 29, 2022.