Bitcoin mining giant Argo Blockchain mined 147 BTC in December, about 25% less than production levels recorded in November.
The main reason for the decline was a massive winter storm that hit the US last month and adversely affected the company’s Helios facility in Dickens County, Texas.
The Cyclone Effect
The severe snow blizzard that affected much of the States around Christmas incited Argo Blockchain will join other Texas BTC miners in reducing electricity usage. With decreased production power, the company mined 147 bitcoins (worth about $2.6 million at current prices), compared to 198 bitcoins in November.
“While our December mine results were lower than anticipated, the main factor was the winter storm that caused us to scale back operations at Helios. We made this decision not only to reduce energy use on the grid, but also to prioritize the needs of the local community and the safety of our Helios employees.
After the winter storm and associated sub-zero temperatures subsided, we safely brought Helios back online and resumed operations,” stated CEO Peter Wall.
The Lone Star State, which rarely experiences cold weather, experienced freezing temperatures over the Christmas holidays. The local power grid struggled to meet the challenge, and the US Department of Energy declared a power emergency in the region. The weather stabilized in the days that followed, meaning that domestic BTC miners were able to restore their previous production capacity.
Argo Blockchain further revealed that he had 141 BTC as of the end of December 2022, his total debt was almost $80 million, while his bank balance totaled around $20 million.
The deal with Galaxy Digital
The miner recently agreed sell its Helios facility to investment management firm, Galaxy Digital, for $65 million. This allowed Argo to reduce its overall debts and avoid filing for bankruptcy. Speaking about the acquisition, Wall said:
“These agreements with Galaxy mark the beginning of a new chapter for Argo. We built a world-class mining facility at Helios, and I believe Galaxy has the right equipment and resources to build on the foundation that Argo established.”
Mike Novogratz, the CEO of Galaxy Digital, described above the Helios deal as a “transformational acquisition” for their organization.
“We believe long term in BTC and expect lower cost miners to earn over time,” he added.
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