Argo Blockchain mined much less Bitcoin than anticipated in December because of the agency curbing mining operations at Helios amid excessive climate circumstances.
Publicly-listed Bitcoin (BTC) mining firm Argo Blockchain noticed a big drop in mining exercise in December resulting from 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.
As of Dec. 31, Argo held 141 BTC, with its December mining income amounting to $2.49 million, the agency stated. Argo’s complete debt was roughly $79 million, and its financial institution steadiness was about $20 million.
In accordance with the announcement, the lower within the quantity of mined BTC was primarily resulting from Argo curbing mining operations at Helios in response to a serious winter storm in Texas.
In late December, the US Vitality Division declared an influence emergency in Texas, citing a scarcity of electrical energy because of the impression 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 cut back energy utilization on the grid resulting from excessive climate circumstances.
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, announcing the $65 million deal on Dec. 28. The transaction aimed to cut back Argo’s complete debt by $41 million and enhance liquidity and working construction.
Regardless of the sale, Argo will nonetheless proceed mining at Galaxy-owned Helios facility. Argo’s complete hashrate capability continues to be 2.5 exahashes per second, the announcement notes.