Argo Blockchain mines 25% less Bitcoin due to winter storm at Helios

Publicly-listed Bitcoin (BTC) mining firm Argo Blockchain noticed a major drop in mining exercise in December 2022 as a result of a winter storm in Texas.

On Jan. 11, Argo released its first operational replace since promoting its flagship mining facility Helios to Mike Novogratz’s Galaxy Digital. The corporate stated it mined 147 Bitcoin or BTC equivalents in December, in comparison with 198 BTC in November 2022.

The agency stated that as of Dec. 31, Argo held 141 BTC, with its December mining income amounting to $2.49 million. Argo’s whole debt was roughly $79 million and its financial institution steadiness was about $20 million.

In line with the announcement, the lower within the quantity of mined BTC was primarily as a result of Argo curbing mining operations at Helios in response to a serious winter storm in Texas.

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In late December, the USA Division of Power declared an influence emergency in Texas, citing a scarcity of electrical energy as a result of influence of extreme winter climate. Amid an enormous temperature drop accompanied by excessive winds, the demand on the Texas energy grid reached an all-time winter peak in extra of 74,000 megawatts (MW).

Argo CEO Peter Wall identified that the corporate’s mining outcomes have been decrease than anticipated as a result of the agency needed to scale back energy utilization on the grid as a result of excessive climate situations.

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In the course of the winter storm, Argo joined different Texas Bitcoin miners in lowering energy utilization by an estimated 1,500 MW, Wall stated, including:

“After the winter storm and related freezing temperatures had subsided, we safely introduced Helios again on-line and resumed operations.”

Wall talked about that Argo finally determined to promote its Helios facility to Galaxy Digital, asserting the $65 million deal on Dec. 28. The transaction aimed to cut back Argo’s whole debt by $41 million and enhance liquidity and working construction.

Regardless of the sale, Argo will nonetheless proceed mining on the Galaxy-owned Helios facility. Argo’s whole hash price capability continues to be 2.5 exahashes-per-second, the announcement notes.

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