Argo Blockchain Reportedly Selling 637 BTC To Pay Off Debt
Argo Blockchain has joined crypto miners including Bitfarms, Core Scientific, and Riot Blockchain to sell a portion of its Bitcoin holdings.
In a blog post on Thursday, Argo Blockchain said it sold 637 Bitcoin (BTC) in June for an average price of $24,500 — worth about $15.6 million in total. The company planned to use the funds to repay Galaxy Digital, from which Argo secured $20 million and $25 million worth of BTC-backed loan contracts in 2021.
The company reported that as of June 30, it has a total outstanding balance of $22 million and holds “enough liquidity to avoid any possibility of BTC-backed loan liquidation should the Bitcoin price continue to fall.”
“We have seen positive results from our risk management strategy through which we have reduced the Company’s exposure to its BTC-backed loan, and we have hired a full-time derivatives trader. We believe the Company is well positioned to navigate the current market conditions and further increase our efficiencies.”
Following the crypto sale, Argo Blockchain said it was holding 1,963 BTC and BTC equivalents as of June 30, about 18% less than reported in May. Other miners include Bitfarms, Core Scientific, and Riot Blockchain all reported selling a significant percentage of their BTC holdings in June amid the market downturn.
Argo reported that it cut mining operations at its Helios facility in Dickens County, Texas in May after high temperatures — many parts of the state experienced record hot days — led to “increased energy demand and higher electricity prices”.
However, its June report showed an increase in BTC mined and BTC equivalents from 124 to 179, partly due to “higher uptime at the Helios facility.” Riot Blockchain also announced on Thursday plans to move some of its mining equipment from New York to Texas.
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