Publicly-listed Bitcoin (BTC) mining firm Argo Blockchain noticed a major drop in mining exercise in December 2022 as a consequence of a winter storm in Texas.
On Jan. 11, Argo launched 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 stability was about $20 million.
In accordance with the announcement, the lower within the quantity of mined BTC was primarily as a consequence of Argo curbing mining operations at Helios in response to a significant winter storm in Texas.
In late December, the USA Division of Power declared an influence emergency in Texas, citing a scarcity of electrical energy as a result of affect 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 had been decrease than anticipated as a result of the agency needed to scale back energy utilization on the grid as a consequence of excessive climate circumstances.
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Throughout the winter storm, Argo joined different Texas Bitcoin miners in decreasing 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, saying 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.