Argo Blockchain, a publicly-listed cryptocurrency mining company that operates primarily in the Bitcoin market, recently released an operational update revealing a significant decrease in mining activity during the month of December. This drop in activity was caused by a severe winter storm that hit the state of Texas, where the company’s mining facility is located.
This update marks the first time Argo has released information about its operations since it sold its flagship mining facility, Helios, to Galaxy Digital, a company owned by prominent investor Mike Novogratz.
According to the update, the company mined 147 Bitcoin, or the equivalent thereof, in December, compared to 198 Bitcoin mined in November 2022. This represents a drop of approximately 26% in mining activity, undoubtedly caused by the inclement weather conditions that hindered operations.
According to the update, as of December 31st, Argo Blockchain reported holding 141 Bitcoin (BTC) in assets. This Bitcoin was mined in December, and the company stated that the mining revenue for the month amounted to $2.49 million. The update also revealed the company’s total debt as of the end of December, which was approximately $79 million, and its bank balance is about $20 million.
The update also explained the reason behind the decrease in mining activity, stating that the reduction in the amount of mined BTC was mainly due to Argo’s decision to curtail mining operations at its flagship mining facility, Helios, in response to a significant winter storm that hit the state of Texas.
The storm caused widespread power outages and other disruptions that made it difficult for the company to continue its mining operations at full capacity.
Meanwhile, Argo blockchain recently announced the sale of its Helios facility to Galaxy Digital. The deal announced on December 28th is worth $65 million and aims to reduce Argo’s total debt by $41 million while improving its liquidity and operating structure.
Despite the sale of the facility, Argo will continue to mine at the Helios facility, now owned by Galaxy Digital. According to the announcement, Argo’s total hashrate capacity will remain at 2.5 exahashes per second.
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