Bitcoin miner Argo managed to mine 22.4% more Bitcoin in July compared to June. However, despite increasing the number of BTC it acquired in July, it also sold out. Accordingly, Argo sold 887 BTC in July at an average price of $22,670 per cryptocurrency.
Cryptocurrency company sold 887 BTC
The company used most of its revenue from the 887 Bitcoins it sold. The company sold the majority of the money to reduce its BTC-backed loan debt to Galaxy Digital to $6.72 million. According to Argo’s first-quarter results, the company has millions of dollars in debt. Accordingly, the company had $58.6 million in loans as of March 31, 2022. The company’s loan from Galaxy consists of the $45 million it received to finance its facility in Texas. Argo also increased its debt by signing an additional $26.66 million loan from NYDIG in March of this year. Argo CEO Peter Wall gave a video presentation on Friday. In his presentation, Wall clarified the subject by saying, “This is something we have cleared our debts for the last three, four, five months.”
In addition, he mentioned that the sale was related to Bitcoin price volatility. Accordingly, if BTC falls in the future, the company is in danger of taking risks due to its debts. So, BTCs sold at an average of $22,670 was a strategic decision to avoid the price drop and pay off debts. Argo also made sales with the leading cryptocurrency in June. The company disposed of 637 Bitcoins in the aforementioned period. In June, as in July, he used the proceeds to pay off his debt. By the end of June, it had reduced its outstanding debt with Galaxy to $22 million. Argo was holding 1,295 BTC, of which 227 in BTC equivalent, as of July 31.
power outage in Texas
Argo’s quarterly results revealed another interesting result. Accordingly, the firm revealed that it mined 22.4% (219 BTC) more Bitcoin in July. This increase has occurred despite the fact that like other miners in Texas, it dwindles power during periods of extreme heat. The company didn’t reveal exactly how much power it had to throttle. But miners in Texas claimed that mass use has slashed more than 1,000 megawatts at peak demand. Argo’s rival, Riot, said this week it cut power by 11,717 megawatt-hours in July. Riot also won $9.5 million in electricity loans from the government. Mining firm Core Scientific also announced today that it has reduced power to 8,157 megawatts/hour during July.
Argo said energy costs for Helios, its flagship in Texas, were higher than expected. “This is because we currently have a PPA (an energy purchase agreement) tied to index prices,” Wall said. Then, “Electricity prices are really high. It’s like signing a mortgage when interest rates are really high. You have to wait for them to fall.” he added. The CEO expects electricity rates to decline towards September. Thus, he hopes he can negotiate a better PPA for a fixed price. Argo’s margin was 37% in July. “It’s not a big difference,” Wall said. However, it is not where we want to be and that must change in the future.” It remains unclear whether the company will also sell on the leading cryptocurrency in August. cryptocoin.comAs we reported, BTC was trading at $ 23,182 at the time of writing.
