Argo Blockchain has joined cryptocurrency mining companies like Bitfarms, Core Scientific, and Riot Blockchain that have sold part of their Bitcoin holdings.
In a blog post on Thursday, Argo said that it sold 637 bitcoins (BTC) in June at an average price of $24,500 – roughly $15.6 million. The company planned to use the funds to reduce its debt with Galaxy Digital, from which Argo secured separate $20 million and $25 million BTC-backed loan deals in 2021. The mining company reported that as of June 30, it had an outstanding balance of $22 million on the loan and maintains “sufficient liquidity to prevent any potential liquidation of the BTC-backed loan if the price of Bitcoin continues to decline.”
“We have seen positive results from our risk management strategy through which we have reduced the firm’s exposure to its BTC-backed loan, and hired a full-time derivatives trader,” said Argo CEO, Peter Wall. “We believe the company is well positioned to navigate current market conditions and further increase our efficiencies.”
Argo’s June Operational Update is now live. Details:
-Mined 179 BTC or BTC Equiv, up 44% from May
-Mining rev was £3.38m [$4.35 m]
-Month-end, we held 1953 Bitcoin, of which 210 were BTC Equivalents
More in today’s press release: https://t.co/cHiFYcW4uf
#ARB $ARBK #BTC—Argo (@ArgoBlockchain) July 7, 2022
Following the cryptocurrency sales, Argo said it held 1,963 BTC and BTC equivalents as of June 30, about 18% less than reported in May. Other mining companies, including Bitfarms, Core Scientific, and Riot Blockchain, reported selling a significant percentage of their BTC holdings in June amid the market crash as the price of the top cryptocurrency fell below $18,000. .
Argo reported that it had halted mining operations at its Helios facility in Dickens County, Texas, in May due to high temperatures – many parts of the state experienced days of extreme heat – which led to an “increase of energy demand and electricity prices”. However, their June report showed an increase in mined BTC and BTC equivalents from 124 to 179 due, in part, to “increased uptime at the Helios facility.” Riot Blockchain also announced plans on Wednesday to move part of its mining fleet from New York to Texas.
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