The UK-based cryptocurrency mining firm – Argo Blockchain – mined 179 BTC last month. However, due to the current market conditions and its loan agreement with Galaxy Digital, the company had to sell 637 BTC at an average price of around $24,500.
More Sellings Than Production
In September 2021, Argo Blockchain secured a $25 million bitcoin-backed loan from Galaxy Digital (an investment management firm spearheaded by Mike Novogratz). The financing was meant to fuel the company’s expansion plans in West Texas and meet its cash flow requirements.
In its most recent announcement, Argo Blockchain disclosed that it had to sell 637 BTC in June to reduce the obligations of the agreement. The average price of the sellings was approximately $24,500. As of the end of last month, the entity had an outstanding balance of $22 million under its credit.
“Throughout 2022, the company has been selling a significant portion of monthly bitcoin production, steadily reducing its exposure to its BTC-backed loan and strengthening its balance sheet. The company is confident that it possesses sufficient liquidity to avoid any potential liquidation of the BTC-backed loan if bitcoin’s price continues to decline,” the update reads.
Moving on to production, Argo Blockchain mined 179 BTC in June compared to 124 BTC in May. The better results are due to increased total hashrate capacity and greater efficiency of the Helios facility in Texas.
Currently, the organization holds 1,953 BTC (210 of which are BTC Equivalents). Calculated by current prices, the stash equals nearly $40 million.
June was a successful month for Argo’s total hashrate capacity, which surged to 2.2 EH/s. The firm managed to install S19J Pro machines that boosted productivity, while additional 20,000 devices bought from Bitmain are expected to arrive by October this year. Speaking on the update was Peter Wall – Argo’s CEO:
“Ongoing efforts to significantly upscale Argo’s mining operations are reflected in this month’s numbers and our increased hashrate…
We believe the company is well-positioned to navigate the current market conditions and further increase our efficiencies. These numbers, along with our continued installations of the S19J Pro machines, put us in a solid position with regards to our mining capacity.”
Argo Borrowed Funds From an NYDIG Subsidiary, too
Earlier this year, the crypto mining firm took an additional $70 million loan from a subsidiary of New York Digital Investment Group (NYDIG). The funds were meant to boost the production capacity of Helios (the company’s leading facility based in Dickens County, Texas).
“We are delighted to secure this additional non-dilutive funding which will enable us to continue fitting out Phase 1 of our Helios site. NYDIG understands the financial requirements of large-scale bitcoin miners, and we are excited to continue working with them to execute and deliver on the next phase of Argo’s growth,” Wall said back then.