Bitcoin miner Argo Blockchain bought certainly one of its websites to repay debt amid its declining BTC manufacturing final month.
Argo sells web site to repay debt
In a Mar. 5 statement, the miner defined that it bought its Mirabel Facility in Quebec for $6.1 million.
Following the sale, Argo allotted $4 million to settle money owed owed to Galaxy Digital, successfully lowering its debt to roughly $14 million as of Feb. 29. This marks a big 60% lower from the preliminary Galaxy debt of $35 million.
Argo clarified that the rest of the proceeds from the sale had been utilized to settle the excellent mortgage of the Mirabel Facility. Moreover, the corporate plans to relocate miners from the Mirabel web site to its Baie Comeau facility in Quebec.
The Mirabel facility, boasting an influence capability of 5 megawatts (MW), will see its miners shifted to the Baie Comeau web site, whereas older miners, representing 140 PH/s, will probably be liquidated.
Thomas Chippas, Argo CEO, mentioned:
“We’re capable of exit the Mirabel Facility with a excessive a number of on its energy capability, and we additionally understand a premium on this actual property asset whereas sustaining a robust hashrate capability of two.7 EH/s.”
In 2021, Argo borrowed to increase its mining endeavors with out promoting its BTC holdings. Nonetheless, as a result of market downturn in 2022, Argo sold its Texas Helios mining web site to Galaxy Digital for $65 million and secured a brand new $35 million from Galaxy to clear different excellent loans.
BTC manufacturing declines
The miner revealed that its BTC manufacturing fell 21% in February to 92 BTC or 3.2 BTC per day as a result of a maintenance-related outage on the third-party-owned Cottonwood substation.
Apart from that, Argo additionally defined that its manufacturing was negatively impacted by the BTC community’s rising mining issue. Final month, CryptoSlate reported that BTC’s mining difficulty hit a record high of greater than 81 trillion.
Because of these points, the agency’s mining income for the month decreased by 15% month-on-month to $4.5 million. Argo holds round 14 BTC as of Feb. 29.
