Agro Blockchain, a multinational crypto mining company, found itself in a difficult position after the valuation of the entire crypto sector fell sharply throughout 2022 and especially in the past two months. The company has officially sold its Texas-based mining facility to Galaxy Digital Holdings, a crypto-focused fintech, amid the ongoing crypto slump. Located in Dickens County, Texas, Agro Blockchain’s Helios Facility has sold for $65 million (around Rs.540 million).
Agro blockchain is allegedly under multiple debts. The Company will use the proceeds from this sale to initiate and complete repayments of the outstanding loans.
The company also raised an additional $35 million loan (INR conversion) from Galaxy Digitalwhich has agreed to continue using Argo’s 23,619 Bitmain S19J Pro mining machines currently in operation at Helios.
“The hosting agreement allows Argo to keep its mining machines running at Helios and mitigate any mining machine downtime by selling the Helios facility. Argo will retain ownership of its fleet of bitcoin mining machines,” Agro Blockchain said in a press release.
The ongoing crypto winter smashed the business of Bitcoin miner hard and fast, which was already struggling to survive despite rising electricity prices in several parts of the world.
According to Bloomberg reportBitcoin miners lost over $1 billion (around Rs. 8,200 crore) during the recent crypto crash.
Twitter founder and former CEO Jack Dorsey this month additional funding to help an East African bitcoin mining company, Gridless, expand its green operations. The capital was provided through Dorsey’s payments company, Block.
Like Agro Blockchain, other crypto mining companies are scrambling to take advantage of the current bear market situation.
Crypto billionaire Jihan Wu reportedly set up a $250 million (nearly Rs.2,040 billion) fund for purchases in September crypto mining machines from distressed sellers. Wu is the founder of the blockchain company Bitmain.
