liquidate its Bitcoin (BTC) assets in order to reduce its debt to Michael Novogratz's crypto investment firm Galaxy Digital.
Argo announced on Friday that it sold another 887 Bitcoin (BTC) in July to lessen obligations under a BTC-backed credit deal with Galaxy Digital.
With an average BTC price of $22,650, the sales were valued at $20.1 million, accounting for a large portion of the maximum outstanding loan balance of $50 million in the second quarter of 2022. According to the announcement, Argo had an outstanding amount of just $6.72 million under the BTC-backed loan as of July 31, 2022.
The current transaction comes shortly after Argo sold another 637 Bitcoin (BTC) for $15.6 million in June 2022. Argo had a total debt of $22 million as of the end of June 30, according to the firm.
Despite regularly cashing out its Bitcoin in recent months, Argo still has a sizable Bitcoin hoard. It has 1,295 BTC as of July 31, 2022, with 227 of those represented by BTC equivalents.
Argo also indicated in its most recent operational update that its mining volumes climbed significantly in July. Argo mined 219 BTC or BTC equivalents in July, compared to 179 BTC the previous month. Mining income in July was $4.73 million, based on daily foreign exchange rates and cryptocurrency prices for the month, compared to $4.35 million in June.
Argo Blockchain is a public business that focuses on cryptocurrency mining and is listed on Nasdaq and the London Stock Exchange. Argo is one of many crypto mining companies that have chosen to sell self-mined bitcoins during the 2022 bear market, including Bitfarms, Core Scientific, and Riot Blockchain.
In contrast, despite harsh market circumstances, crypto mining firms like Marathon, Hut-8, and Hive Blockchain Technologies have continued to adhere to a long-standing HODL policy.
