Argo Blockchain announces selling 637 BTC to settle debts

Argo stated that company has a $22 million outstanding debt on a loan from Galaxy Digital, which it used to obtain BTC-backed loan agreements in 2021.

Argo Blockchain has sold a portion of its Bitcoin assets, joining other cryptocurrency mining companies like Bitfarms, Core Scientific, and Riot Blockchain.

In a blog post published on Thursday, Argo claimed that in June, it sold 637 Bitcoin (BTC) for an average price of $24,500, or nearly $15 million. The money would be used to pay off debt owed to Galaxy Digital, with whom Argo had obtained separate loan agreements in 2021 for $20 million and $25 million BTC. According to the mining firm, as of June 30, the loan's outstanding balance was $22 million, and it had "adequate liquidity to avoid any potential liquidation of the BTC-backed loan" should the price of bitcoin continue to fall.

We have hired a full-time futures trader, and the company's exposure to its BTC-backed loan has been reduced. Our risk management strategy has produced excellent outcomes, according to Peter Wall, CEO of Argo. We believe the company is well-positioned to manage the current market conditions and increase our levels of efficiency.

Following the cryptocurrency sales, Argo revealed that as of June 30, it possessed 1,962 BTC and BTC equivalents, which is around 18% less than that declared in May. As the price of the cryptocurrency asset fell below $18,000 in June, other mining companies like Bitfarms, Core Scientific, and Riot Blockchain also reported selling a sizable portion of their BTC holdings.

Since many areas of the state had days of triple-digit heat in May, Argo claimed that it had scaled back mining operations at its Helios facility in Dickens County, Texas. This was due to the "increased energy demand and higher electricity prices" that resulted from the high temperatures. But according to its June report, mining BTC and BTC equivalents increased from 124 to 179, in part because of "better uptime at the Helios site." On Thursday, Riot Blockchain also revealed plans to relocate a portion of its mining fleet from New York to Texas.