Mining company Argo Blockchain (ARGO), which entered Web3 through its Argo Lab subsidiary earlier this year, announced on Wednesday that it has an intangible stake in Terra USD (UST) and positioned it ‘almost at par’ during the UST meltdown. Said it was closed. Furthermore, the company stated that three altcoin projects remain in its portfolio.
These altcoin projects remain in Argo’s portfolio, which sold its USTs on time
Argo’s CEO, Peter Wall, during the company’s first quarter earnings conference call, said: We didn’t invest much. “We had some UST, we were involved in yield farming in Anchor Protcol (farming).
Argo was one of the first publicly traded crypto mining companies to form a non-mining business unit called “Argo Labs”. The subsidiary was established in January to diversify Argo’s business and take advantage of other opportunities in the Blockchain ecosystem. According to the company’s Q1 presentation, currently Argo Lab’s investments include Polkadot (DOT), Ethereum (ETH), and Solana (SOL).
According to Peter Wall, Argo was able to sell UST positions at 93 cents per token before the price collapsed completely. After the LUNA crash, the UST is still trading around 10 cents. Peter Wall made the following statement on the subject:
Looking back, selling at that level was a very good move considering it’s currently trading around 12 cents. In general, on a net basis, we almost closed our positions in the Terra ecosystem, after taking into account the yield we obtained from our holdings.
Investors in despair with the collapse of Terra
As you can follow from Cryptokoin.com news last week, Terra’ The LUNA token of the US dollar pegged algorithmic stablecoin TerraUSD (UST) lost its peg to less than 10 cents, resulting in an outflow of funds from the Terra ecosystem and decreased sentiment in the crypto community for the project, its value plummeting 99.7%. The collapse of the Terra ecosystem hurt many large-scale and individual investors. On social media and message boards, former LUNA supporters report great losses, desperation and despair.
Argo Blockchain reported first-quarter earnings on Wednesday, where its net income fell but revenue increased year-over-year, and is following the hashrate guideline of 5.5 exahash per second (EH/s) through the end of 2022. repeated. Shares of the miner fell nearly 4% in the US on Wednesday, keeping pace with those of other publicly traded crypto miners.
