Last month, the UK-based cryptocurrency mining company Argo Blockchain mined 179 BTC. The business had to sell 637 BTC, on average, for around $24,500 due to the state of the market and its loan agreement with Galaxy Digital.
Sales are higher than production.
Argo Blockchain obtained a $25 million loan from Galaxy Digital in September 2021, with bitcoin as collateral (an investment management firm spearheaded by Mike Novogratz). The financing was intended to support the business’s plans for growth in West Texas and to cover its cash flow needs.
Argo Blockchain revealed in its most recent announcement that it had to sell 637 BTC in June to pay down the contract’s obligations. The sellings were priced on average at around $24,500. The entity still owed $22 million on its credit as of the end of the previous month.
“The company has been selling a sizable portion of the monthly bitcoin production throughout 2022, steadily lowering its exposure to its BTC-backed loan and enhancing its balance sheet. The company is confident that it has enough liquidity to prevent any potential liquidation of the BTC-backed loan if the price of bitcoin keeps falling, according to the update.
The production of Argo Blockchain increased from 124 BTC in May to 179 BTC in June. The better results are a result of the Texas Helios facility’s increased efficiency and total hashrate capacity.
The organization currently has 1,953 BTC (210 of which are BTC Equivalents). According to current prices, the stash is worth close to $40 million.
The capacity of Argo’s overall hashrate, which increased to 2.2 EH/s in June, was successful. The company installed S19J Pro machines that increased productivity, and another 20,000 Bitmain devices that were purchased are anticipated to arrive by October of this year. CEO of Argo, Peter Wall, provided an update:
“This month’s numbers and our increased hashrate reflect ongoing efforts to significantly upscale Argo’s mining operations…
We think the business is in a good position to handle the current market circumstances and boost our efficiency even more. These figures, combined with our ongoing S19J Pro machine installations, put us in a strong position in terms of our mining capacity.
Argo also borrowed money from a subsidiary of NYDIG.
A division of New York Digital Investment Group provided a further $70 million loan to the cryptocurrency mining company earlier this year (NYDIG). The money was allocated to Helios, the company’s principal facility in Dickens County, Texas, to increase its capacity for production.
“We are excited to have this additional non-dilutive funding, which will allow us to finish Phase 1 of our Helios site’s construction. “We are thrilled to continue working with NYDIG to execute and deliver on the next phase of Argo’s growth because they are aware of the financial needs of large-scale bitcoin miners,” Wall said at the time.