Argo Blockchain cuts December Bitcoin production by almost 26%

In December, the UK-based mining company Argo Blockchain mined 147 BTC after 198 BTC in November. The production decline was 25.75%.

The company attributed the decline to adverse weather conditions in the United States. In the wake of the blizzard that hit several regions, many miners shut down equipment to participate in grid balancing or for staff safety.

As a result, the flagship Helios data centre reduced consumption by about 1,500 MWh in December.

Mining revenue for the month was $2.49 million with a 48% margin. In November, the figures were $3.46 million and 29% respectively.

At the end of December the company struck a deal with Galaxy Digital Holdings Mike Novogratz on the sale of Helios for $65 million and refinancing existing debt of $35 million. The deal will allow Argo to reduce its debt of $79 million by about $41 million.

As of 31 December, the company had cash of about $20 million. Argo’s cryptocurrency reserves stood at 141 BTC.

Under the agreement with Galaxy Digital, the mining company’s equipment fleet will continue to operate at Helios on hosting terms. Argo will maintain an aggregate hash rate of 2.5 EH/s.

“We have built a world-class mining operation, and I believe Galaxy has the necessary team and resources to continue building on the foundation Argo has created. The deal will allow us to continue mining cryptocurrencies both at Helios as a client and at our own data centres in Quebec,” said Peter Wall, the company’s CEO.

In light of the sale of the flagship facility and a shift in priorities, Argo saw the departure of Chief Development Officer Justin Nolan and Vice President of Data Centre Operations Theodor Papadakis.

Wall pledged to outline the company’s growth strategy for 2023 in more detail later.

Following the press release, Argo’s shares on the London Stock Exchange fell by almost 11%. The stock traded near £9.1. The low was £2.5 on 16 December 2022; the highs near £300 were seen in November 2021.

Earlier in October, Argo said that failed to raise £24 million for working capital.

In December, the exchanges halted trading in the company’s shares amid expectations of a bankruptcy filing.

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