H.C. Wainwright Analyst Kevin Dede maintained a hold rating Argo Blockchain Plc ARBK, given the uncertainty in Argo’s prospects. Yesterday, Argo Blockchain announced the sale of its Helios facility, an 800MW ERCOT grid connection that hosts 200MW immersion bitcoin mining Building operation only since May 2022.

The deal includes the elimination of all current Argo debt, which Dede measured in the range of $143 million at the end of the June quarter, in exchange for a $65 million value of the facility and a bitcoin mining rig secured loan of $35 million from buyer. Galaxy Digital Holdings Ltd BRPHF.

For Galaxy, the purchase represents an opportunity to secure a brand new immersion bitcoin mining facility that reduces reliance on external hosting arrangements while providing a runway for mining expansion.

Argo’s case is a bit more cut and dry. The deal preserves the company’s current operating structure, relieves the debt burden and avoids filing for bankruptcy.

Additionally, Argo’s fleet of 23,619 Bitmain S19J Pro machines, producing 2.36 Uh/s, continues to run with minimal disruption at the Dickens County, Texas facility, which was the heart of Argo’s ambitions until the recent mining downturn.

Also, Argo intends to focus business efforts on its two Quebec assets producing 140 Ph/s bitcoin and an unknown amount of Zcash mining under a total of 20MW of low-cost hydropower – Argo’s total bitcoin hash rate is 2, 5 h/s .

In its bitcoin mining operations, Galaxy has a highly skilled staff led by Amanda Fabiano, a longtime, highly respected crypto thought leader.

Given that Helios’ current 40 employees are expected to remain in their positions, Dede was reasonably confident that Helios’ productivity should stabilize and improve once Galaxy sets up a PPA with a Texas electric utility.

Argo has drawn a clear balance sheet after closing the deal. Argo’s debt obligations to NYDIG should…