UK-based cryptocurrency mining firm Argo Blockchain mined 179 Bitcoins last month. However, due to the current market conditions and the loan agreement with Galaxy Digital, the company had to sell 637 BTC at an average price of around $24,500.
Argo oversold Bitcoin production
In September 2021, Argo Blockchain received a $25 million Bitcoin-backed loan from Mike Novogratz’s Galaxy Digital. The funding was to fuel the company’s expansion plans in West Texas and meet its cash flow requirements.
Meanwhile, Argo Blockchain announced in its most recent announcement that it had to sell 637 BTC in June to reduce its liabilities in the deal. The average price of sales was about $24,500. As of the end of last month, the business had an outstanding balance of $22 million under its credit. The company made the following statements in its statement:
Throughout 2022, the company has steadily reduced its exposure to BTC-backed lending by selling a significant portion of its monthly Bitcoin production. In this way, it strengthened its balance sheet. The company is confident that it has sufficient liquidity to avoid the possible liquidation of the BTC-backed loan if the price of Bitcoin continues to drop.
The company mined more BTC than in the previous month
However, Argo Blockchain mined 179 BTC in June compared to 124 BTC in May. Better results are due to increased total hashrate capacity. In addition, the higher efficiency of the Helios plant in Texas is effective. Currently, the organization holds 1,953 BTC (210 of which are in BTC equivalent). Calculated at current prices, the stash amounts to about $40 million.
In addition, Argo’s total hashrate capacity increased to 2.2 EH/s in June. So it’s been a successful month for the company. The firm has succeeded in installing the productivity-boosting S19J Pro machines. Also, an additional 20,000 devices purchased from Bitmain are expected to arrive by October this year. Speaking about the developments, Argo CEO Peter Wall said:
Our efforts continue to significantly upgrade Argo’s mining operations. This is reflected in the figures for the month and our increased hash rate. We also believe that the company is well positioned to navigate current market conditions and further increase our efficiency. These numbers, together with the ongoing installations of the S19J Pro machines, put us in a solid position in terms of our mining capacity.
Argo also borrowed from NYDIG subsidiary
As you follow on Kriptokoin’com, Argo received an additional $70 million loan earlier this year from a subsidiary of crypto mining company New York Digital Investment Group (NYDIG). The funds were aimed at increasing the production capacity of Helios. Peter Wall said the following on the subject:
We are pleased to provide this additional funding that will allow us to continue to organize Phase 1 of our Helios system. NYDIG understands the financial requirements of large-scale Bitcoin miners. We are excited to continue working with them to drive and deliver the next phase of Argo’s growth.
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